Essential reading for the healthcare business
 
 
Remember me:
Skip Navigation LinksHealthInvestor article
Bupa sells £500m of hybrid bonds

UK private medical insurance company Bupa has sold £500 million of hybrid bonds in order to fund acquisitions, according to Business Week.

The company sold 10-year subordinated notes, which are made up of debt and equity. The notes were priced to yield 355 basis points more than gilts.

Bupa group treasurer Gareth Evans told Business Week: “Some of the proceeds will be used to support, in part, our Lux Med and Dental Corporation acquisitions.

“Still, the rationale for the bond issue is to enable Bupa to further enhance its prudent liquidity and solvency capital positions and provide a further buffer for growth opportunities.”

Bupa completed its acquisition of Polish healthcare provider Lux Med Group for €400 million (£342 million) earlier this year and is in the process of acquiring Australia and New Zealand-based Dental Corporation for AUD$347 million (£244 million).

Issuing hybrid bonds allow companies to borrow with a reduced risk of a credit downgrade because ratings firms count 50% of the bonds as equity.

Moody’s gave Bupa’s hybrid bonds a Baa3 rating according to a report on 15 April.


Related articles:

Posted on: 23/04/2013

Latest news stories

19/09/2019
Australian hospital group Ramsay Health Care is working on a bid for Acadia Healthcare’s UK-based The Priory Group and Partnerships in Care.
19/09/2019
Medical product specialist Vernacare has completed a refinancing of its banking facilities.
18/09/2019
Target Healthcare, the real estate investment trust that invests in purpose-built UK care homes, has announced results for the year ending 30 June 2019.
17/09/2019
Primary Health Properties, which invests in UK and Irish primary healthcare facilities, has raised €70 million through a loan note issue.
17/09/2019
A group of care homes in Suffolk has been acquired by Impact Healthcare REIT in a deal which provides a full exit for the founding shareholders.


Civica


HealthInvestor blog
It is traditional that we only publish one issue to cover both July and August so it’s been a while since we went to press here at HealthInvestor UK. In the meantime, the political landscape has undergone something of a transformation...

Click here to view the HealthInvestor blog


Chief executive at specialist care provider Eden Futures
Andrew Elder, deputy managing partner and head of healthcare investing at AlbionVC, says transformational technologies must secure clinical buy-in to ensure their effectiveness and utilisation...
Geoff Hodgson talks to Qualia Care’s chief executive Robin Forster and director of care/finance officer Val Norton about a funding model which allows the company to take on distressed care homes shunned by mainstream investors...
As care charities move away from operating their own services in favour of campaigning and support roles, HealthInvestor UK considers the investment opportunities that flow from this trend...
CQC inspection reports have provided a framework for improvement for independent acute hospitals. Marie Cahalane unpicks the commission’s latest publication on the sector and describes the actions driving the agenda of improvement...

Click here to search all feature articles



Digital primary care

Earlier this year, the UK digital primary care market felt full of potential for investors but who are the players and what are the products that stand out now that the dust has settled? Kathy Oxtoby investigates
Read more


Christie + Co

my images



Domiciliary Care
Rob Munro talks to the head of one of the country's leading domiciliary care providers about challenges and opportunities in a sector where many companies have foundered
Read more