Pricing

Bupa

Pricing RNS

Bupa Finance plc announces the pricing of its offering of £400,000,000 5.00% Fixed Rate Subordinated Notes due 8 December 2026

2 December 2016

Bupa, the international healthcare company, announces that it has successfully launched and priced £400,000,000 fixed rate subordinated notes due 8 December 2026 (the "Notes") to be issued by its subsidiary, Bupa Finance plc. The Notes carry a coupon of 5.00 per cent per annum and are expected to be rated Baa2(hyb) and BBB by Moody's and Fitch, respectively.

The Notes were priced at a spread over gilts of 367 basis points and have a maturity date of 8 December 2026. The transaction attracted strong demand from investors, with the final order book closing at over £1.1bn. The Notes will qualify as tier 2 capital. Subject to compliance with applicable regulatory requirements, Bupa Finance plc will redeem the Notes at the Maturity Date or may, subject to compliance with applicable regulatory requirements, redeem the Notes at any time beforehand upon the occurrence of certain tax or regulatory events.

Joy Linton, Chief Financial Officer said, "Following the recent announcement of the proposed acquisition of Oasis Dental Care, we have taken the opportunity to raise tier 2 capital. This further enhances our prudent solvency capital and liquidity positions. We are pleased with the continued support of our fixed income investor base as we remain focused on delivering great service and care for our customers and continuing to generate a strong and sustainable business performance."

For further information, please contact:

Gareth Evans, Group Treasurer, +44 20 7656 2316

Mark Dalton, Deputy Group Treasurer, +44 20 7656 2370

DISCLAIMER - INTENDED ADDRESSEES

This publication does not constitute an offering of debt instruments, and is not for distribution in or into the United States. The Notes have not been and will not be registered under the United States Securities Act of 1933 as amended (the "Securities Act"), or any relevant securities laws of any state of the United States and, subject to certain exceptions, the Notes may not be offered, sold or delivered in the United States or to, or for the account or benefit of, U.S. persons, as such terms are defined in Regulation S under the Securities Act. Notes in bearer form are subject to U.S. tax law requirements and may not be offered, sold or delivered within the United States or its possessions or to a U.S. person, except in certain transactions permitted by U.S. tax regulations. Terms used in the preceding sentence have the meanings given to them by the U.S. Internal Revenue Code and regulations thereunder. There will be no public offering of the Notes in the United States.

Please note that the information contained in this announcement may be addressed to and/or targeted at persons who are residents of particular countries only and is not intended for use and should not be relied upon by any person outside these countries.

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