Standard Life Aberdeen shares slip on proposed debt offering

 
Lucy White
US Dollar Drops To Two And Half Year Low After Latest N. Korean Missile Launch
The new bonds will be US-denominated, and have been assigned a Baa1 rating by Moody's (Source: Getty)

Recently merged asset manager Standard Life Aberdeen saw its shares slip today as it proposed a subordinated debt offering.

The firm said it would use the new capital for “general corporate purposes”, including refinancing existing debt, as part of its “active capital management strategy”. Its shares ended the day down 2.12 per cent.

Read more: Aberdeen Standard gives its long lease fund a facelift with a £40m Harley Street deal

Moody’s assigned a Baa1 rating to the proposed bonds, which will be US-denominated, giving them a moderate credit risk. It said this was its standard practice for asset management companies.

Standard Life Aberdeen was formed from the £11bn merger of Standard Life Investments and Aberdeen Asset Management, which completed in August.

Yesterday’s debt issuance, which the firm will be giving more details on as it tours roadshows across London, Singapore and Hong Kong, was the first since the two groups combined.

Earlier this week, the firm’s chairman Gerry Grimstone gave his backing to the controversial UK listing of oil giant Saudi Aramco.

Read more: City divided on Saudi Aramco: City of London Corporation backs FCA's new listing rules to help stock exchange lure oil giant

Related articles