Aviva's share price tumbles on news of US expansion

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Aviva's share price has fallen 2.2% on news it is entering the US retail market with the creation of capital securities worth $400m (£295m).

The securities, which will operate like bonds, will pay 8.25% and are due on 2041. An Aviva spokesman told the London Stock Exchange today that the move reflects the firm's desire to utilise its listing in New York to broaden its financing base. Aviva says it will use the money for "general corporate purposes" and that "proceeds will be counted towards its regulatory capital resources". Last month, the insurance firm announced a restructuring of Aviva Europe, in order to create a "leaner cost base". Aviva shared fell by 2.2% in trading today, by 6.50p to 290p.

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