subordinated securities

Prudential PLC
15 July 2005



FOR IMMEDIATE RELEASE


Friday 15 July 2005


           Prudential plc - Issue of US$300m subordinated securities


On 15 July 2005, Prudential plc issued US$300 million perpetual subordinated
securities exchangeable into preference shares. They bear interest at 6.5% p.a.,
payable quarterly in arrears, and rank equal to preference shares.

The securities can be redeemed at Prudential plc's option on any interest
payment date from 23 September 2010. Payments under the securities would be
mandatorily or optionally deferred if Prudential plc fails to meet certain
conditions relating to solvency which are set out in the terms and conditions of
the securities.

Interest may be paid through an alternative coupon settlement mechanism at any
time. Deferred interest is only payable at redemption or exchange, through an
alternative coupon settlement mechanism, or upon a winding-up. Prudential plc
has the option to exchange the securities into fixed-rate 6.5% preference shares
on any interest payment date from 23 March 2011. Dividend payments on the
preference shares are fully discretionary.

The securities were sold in the US market and application to list them on the
New York Stock Exchange has been made.  They are rated A by Standard & Poor's,
Baa1 by Moody's and A + by Fitch.  The proceeds will be used to refinance
existing debt, while also counting towards Prudential plc's regulatory capital
requirements.

This press release is not an offer for sale of the securities in the United
States, and the securities may not be sold in the United States absent
registration or an exemption from registration under the U.S. Securities Act of
1933, as amended. Any public offering of the securities in the United States
will be made by means of a prospectus containing detailed information regarding
Prudential plc (the 'Company') and the Company's management, including financial
statements. Such prospectus will be made available through the Company. The
Company has registered the offering in the United States.


                                    - ENDS -


                   Not for distribution in the United States.


Enquiries to:

Media                                      Investors/Analysts
Jon Bunn                  020 7548 3559    James Matthews       020 7548 3561
William Baldwin-Charles   020 7548 3304    Marina Lee-Steere    020 7548 3511
Joanne Davidson           020 7548 3708







Notes to Editors


*Prudential plc, a company incorporated and with its principal place of business
in the United Kingdom, and its affiliated companies constitute one of the
world's leading financial services groups. It provides insurance and financial
services directly and through its subsidiaries and affiliates throughout the
world. It has been in existence for over 150 years and has £187 billion in
assets under management, (as at 31 December 2004). Prudential plc is not
affiliated in any manner with Prudential Financial, Inc, a company whose
principal place of business is in the United States of America.

Forward-Looking Statements

This statement may contain certain 'forward-looking statements' with respect to
certain of Prudential's plans and its current goals and expectations relating to
its future financial condition, performance, results, strategy and objectives.
Statements containing the words 'believes', 'intends',  'expects', 'plans',
'seeks' and 'anticipates', and words of similar meaning, are forward-looking.
By their nature, all forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances which are beyond
Prudential's control including among other things, UK domestic and global
economic and business conditions, market related risks such as fluctuations in
interest rates and exchange rates, and the performance of financial markets
generally; the policies and actions of regulatory authorities, the impact of
competition, inflation, and deflation; experience in particular with regard to
mortality and morbidity trends, lapse rates and policy renewal rates; the
timing, impact and other uncertainties of future acquisitions or combinations
within relevant industries; and the impact of changes in capital, solvency or
accounting standards, and tax and other legislation and regulations in the
jurisdictions in which Prudential and its affiliates operate. This may for
example result in changes to assumptions used for determining results of
operations or re-estimations of reserves for future policy benefits.  As a
result, Prudential's actual future financial condition, performance and results
may differ materially from the plans, goals, and expectations set forth in
Prudential's forward-looking statements. Prudential undertakes no obligation to
update the forward-looking statements contained in this statement or any other
forward-looking statements it may make.





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