(Boursier.com) — Crédit Agricole Assurances successfully places an issue of 500,000,000 euros of Tier 2 subordinated bonds at a fixed annual rate of 5.875% and sets the maximum acceptance amount of 500,000,000 euros. its previously launched Tender Offers.
The New Issue has been structured so that the newly issued bonds are eligible for Tier 2 capital under Solvency II. The Bonds will bear interest at a fixed annual rate of 5.875% until their maturity in 2033. It is envisaged that the Bonds will be rated by Standard & Poor’s, with an “expected” BBB rating, and their admission to trading on the regulated market of Euronext Paris will be solicited, subject to the approval by the Financial Markets Authority of a prospectus which will detail the terms and conditions of this New Issue.
The transaction was met with strong investor demand, with the issue almost four times subscribed. Settlement and delivery of the Bonds is scheduled for October 25, 2023.
Following the placement of the New Issue, Crédit Agricole Assurances also announces setting the maximum acceptance amount of its Repurchase Offers at the nominal amount of the New Issue, i.e. 500,000,000 euros. Crédit Agricole Assurances has the option to reduce or increase the Maximum Acceptance Amount and will announce the final amount of the bonds repurchased under its Repurchase Offers, as well as the allocation between each strain of Existing Bonds, at its discretion. complete discretion when publishing the final results of the Tender Offers.
As previously announced, the Existing Bonds subject to the invitation made to the holders of the Existing Bonds to present their bonds with a view to their repurchase by Crédit Agricole Assurances are perpetual subordinated bonds issued in 2014 and 2015 by Crédit Agricole Assurances, currently benefiting from a grandfather clause, with an outstanding principal amount of 1 billion euros (ISIN FR0012444750) and 750 million euros (ISIN FR0012222297) and bearing interest at fixed annual rates of 4.25% and 4, 5% reviewable on January 13 and October 14, 2025, respectively.
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