AT1-Style Insurer Debt Draws Huge Demand in Pound Market (1)

Investors clamored to buy a type of insurance bond with similarities to the riskiest form of bank debt in the sterling market.

Life insurer Chesnara Plc sold £150 million ($200 million) of perpetual Restricted Tier 1 notes with an 8.5% coupon, according to a person familiar with the matter, who asked not to be identified as the information is private. Bids for the sale exceeded £1.4 billion, or more than 9.3 times the transaction size.

The popularity of higher-yielding, investment grade debt types has been a feature through 2025, with the year’s only other RT1 sale in pounds drawing an ...