Standard Life taps into Canada

By GARETH MACKIE
Published on 18/09/2012 00:00

Standard Life has become the latest company to tap into Canada’s debt markets after raising C$400 million (£253.6m) through a bond issue.

The life and pensions group said its Canadian arm may, subject to local regulatory approval, use the proceeds to repay C$400m of existing internal debt. In June, airports operator BAA also raised C$400m through its first issue of bonds denominated in Canadian dollars.

Jackie Hunt, chief financial officer at Standard Life, said strong demand and favourable market conditions meant the group was able to raise the funds at a fixed rate of just under 4 per cent for the first five years.

It will then pay 2.1 per cent above the three-month Canadian interbank rate until September 2022.