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CNP Assurances successfully completes €500? million perpetual bond issue

The issue was placed with more than 400 European institutional investors. The order book totalled around €6.5 billion. The bonds will pay a 4.00% fixed rate of interest over the first 10 years and subsequently adjusted every five years...

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On 12 November 2014, CNP Assurances completed a €500-million issue of perpetual subordinated bonds with a first-call date of 18 November 2024.

The issue was placed with more than 400 European institutional investors. The order book totalled around €6.5 billion. This success demonstrates the interest for and the trust in the CNP Assurances credit.

The issue was structured to be recognized as capital under both insurance regulations - Solvency 1 and Solvency 2 standards - and Standard & Poor’s rating criteria.

The perpetual bonds should be classified as IFRS equity in the consolidated balance sheet.

The bonds will pay a 4.00% fixed rate of interest over the first 10 years and subsequently adjusted every five years.

Current favorable market conditions allowed optimization of financing costs: the coupon is the lowest paid by CNP Assurances since its first subordinated debt issue in 1999.

The issue will be used to refinance upcoming redemptions.

The new bonds are rated BBB+ by Standard & Poor’s, using the rating methodology applied to hybrid debt.

Settlement is scheduled for 18 November 2014.

Next Finance , November 2014

Article also available in : English | français

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