Aviva raises $400m

18th Nov 2011 08:15

Aviva, the FTSE 100 insurance giant, is to raise $400m in capital securities.The securities, which despite their name, will operate almost exactly like bonds, will pay 8.25% and are due for repayment in 2041.An Aviva spokesman told Sharecast that this is the first time Aviva has entered the US retail market and reflects the firm's desire to utilise its listing in New York to broaden its financing base.Aviva says it will use the money for "general corporate purposes" and that "proceeds will be counted towards its regulatory capital resources".Shares in Aviva were down 1.45% in early trading.BS