Zurich announced the successful placement of €788 million [$1.032 billion] of dated subordinated notes, maturing in October 2043 and first callable in October 2023. The transaction was primarily targeted at European institutional investors.
Zurich said the notes will be “issued by Zurich Insurance Company Ltd to a repackaging vehicle (Aquarius + Investments plc, Dublin). The repackaging vehicle in turn issues notes to investors that are secured by the Notes. The annual coupon is fixed at 4.25 percent until the first call date. Thereafter, the holders of the Notes will receive a floating coupon.”
Zurich also said that concurrently with the new issuance “investors who held the Zurich Finance (USA), Inc. €500 million [$655 million] dated subordinated notes due 2025 were offered to switch part or all of their holdings for the Notes.
“The total nominal amount of the 2025 notes switched was €82 million [$107.5 million] for which those investors received €88 million [$115.3 million] of the Notes which reflects the offered switch price.
“The Notes are expected to be treated as capital from a regulatory and rating agency perspective to the extent permissible. The transaction has been conducted for general corporate purposes and to address refinancing needs in 2013.”
Source: Zurich Insurance