FWD Group Holdings Limited (FWD) has priced and completed the issuance of SGD270.00 million (approximately US$0.21 billion) 3.18% Subordinated Dated Capital Securities due 14 April 2032 under its US$5.00 billion Global Medium Term Note and Capital Securities Programme. The notes are intended to qualify as Tier 2 group capital under Hong Kong Insurance Authority rules and target professional investors only. Listing on the Hong Kong Stock Exchange is expected to become effective on 15 July 2026.
Key terms • Instrument: Subordinated Dated Capital Securities (Series 6, Tranche 1) • Issue size: SGD270.00 million • Coupon: 3.18% per annum, payable semi-annually on 14 April and 14 October (Actual/365) • Issue price: 100.00% of par; denomination of SGD250,000 • Maturity: 14 April 2032, with multiple issuer call and regulatory/tax redemption options, including make-whole at +20 bp margin • ISIN: XS3420264866 • Expected ratings: Moody’s Baa2, Fitch BBB− • Lead managers: Standard Chartered Bank (Singapore) Limited (stabilising), DBS Bank, OCBC, UOB, Goldman Sachs, HSBC, Mizuho Securities, Morgan Stanley, SMBC Nikko; additional co-managers include ANZ, Bank of China (Hong Kong), Citigroup and CMB Wing Lung Bank • Settlement: 14 July 2026; delivery versus payment through Euroclear/Clearstream • Investor restrictions: Limited to professional investors in Hong Kong; EEA/UK retail and U.S. Regulation S (Category 2) only, not Rule 144A-eligible
Use of proceeds Net proceeds will be allocated to general corporate purposes, including refinancing of FWD’s US$200.00 million 6.675% subordinated perpetual capital securities originally issued on 1 February 2018.
Recent operational performance (unaudited 1Q 2026) • New business sales (APE): US$720 million, up 4% YoY at constant exchange rates • New business contractual service margin: US$556 million, up 18% • Value of new business: US$314 million, up 7% • NB CSM margin improved to 78.4% (from 69.7%); VNB margin rose to 43.5% (from 42.3%)
Segment highlights • Japan: APE +22%, driven by single-premium savings products • Expansion Markets (Indonesia, Malaysia, Philippines, Singapore, Vietnam): APE +28% • Hong Kong & Macau: APE +1% after strong 1Q25 base • Thailand & Cambodia: APE −6% amid lower interest-rate environment
Liquidity & capital FWD reports stable normalised capital generation, sound group solvency under Hong Kong’s Group Capital Rules and no significant change in financial position since 31 December 2025.
Risk considerations The subordinated nature of the securities subjects holders to lower priority in a wind-up. Redemption is contingent on regulatory conditions, tax or rating events, and minimum outstanding thresholds. The notes are not deemed suitable for retail investors and carry customary market, liquidity, regulatory and tax risks; investors must meet professional-investor criteria.
Regulatory & tax notes The issue is structured to benefit from Singapore’s qualifying debt securities tax concessions (valid through 31 December 2028), subject to conditions. Benchmark fallback provisions are incorporated to address potential discontinuation of the SORA OIS reference rate.
Board composition FWD’s board is chaired by independent director Prof. Frederick Ma Si-hang, with Richard Li and Group CEO Huynh Thanh Phong as executive directors, supported by non-executive and independent non-executive directors.
No material adverse change FWD states there has been no significant change in the Group’s financial or trading position, nor any material adverse change in financial prospects, since 31 December 2025.
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