Swiss Re said it is “is on track to complete its external financing for the acquisition of GE Insurance Solutions with the successful placement of $2.0 billion equivalent of hybrid capital securities.”
The bulletin noted that the Company had “enjoyed strong support from both European and US fixed-income investors.” The $2 billion offering is composed of a €1.0 billion ($1.265 billion) tranche and a $750 million tranche of subordinated step-up preferred securities.
“Strong demand by institutional fixed-income investors led to attractive pricing conditions: the EUR offering was priced at 1.09 percent above the 10 year EUR swap rate and the USD tranche at a spread of 1.70 percent over the 10 year US Treasury yield,” said the announcement. The USD offering was Swiss Re’s first such transaction targeted towards US institutional investors and as such diversifies the Group’s access to the global capital markets. “Both securities will qualify for favorable capital treatment by Swiss Re’s regulators as well as the major rating agencies.”
Topics USA
Was this article valuable?
Here are more articles you may enjoy.
NY Lawmakers Agree to Governor’s Auto Insurance Reforms in New Budget 
Entrepreneur’s Suit Says My Safe Florida Home Hurricane Shutters Are Fire Hazards 
After Complaint, GEICO Agrees to Modify Cancellation Process That Uses AI 
AIG’s Turnaround Under Zaffino Sets Stage for New Leadership 
