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Shares in Prudential (LON:PRU) dropped by 1.02% to 1,687.50p (as of 10:35 BST) after the company released details about the debt rebalancing that will take place as it de-merges M&G Prudential from the group. The company will update the prospectus for its £10 billion medium-term note programme in advance of this to include the 2018 interim results.
At the time of the demerger, it is expected that M&G Prudential will hold roughly £3.5 billion in subordinated debt with a shareholder Solvency II ratio of around 170%. This would be subject to the approval of the ultimate holding company for the new entity and there is no certainty that a demerger will take place at this time.