Dai-ichi Life to issue ¥80B of perpetual subordinated debt

Japan's Dai-ichi Life Holdings Inc. plans to issue ¥80 billion of perpetual subordinated notes to strengthen its capital base.

The notes will bear interest at a fixed rate of 1.124% per year for the first 10 years and five-year Japanese government bond interest rate plus 2.000%, which will reset every five years, from the day immediately following March 17, 2031. The payment date is March 17.

The notes are callable on each interest revision date on or after March 17, 2031 at the discretion of the company, subject to prior government approval.

The company plans to use net proceeds from the issuance of the notes towards a subordinated loan to Dai-ichi Life Insurance Co. Ltd. and repayment of its existing subordinated debts using funds from the loan by the end of December. Any remaining amount will be used for working capital.

As of March 10, US$1 was equivalent to ¥108.60.