Old Mutual (OML) said on Monday it is to redeem US$750 million 8% guaranteed cumulative perpetual preferred securities of Old Mutual Capital Funding.
Old Mutual plc said that all of the preferred securities‚ which were issued by Old Mutual Capital Funding on May 19 2003 and are guaranteed on a subordinated basis by the company‚ would be redeemed on September 22.
The UK Financial Services Authority has been informed about the proposed redemption and has confirmed its non-objection.
The redemption of the preferred securities will complete Old Mutual’s target of GBP1.5 billion of debt reduction that it set in 2010 to be achieved by the end of 2012. - I-Net Bridge