Swiss Re Places A$750 Million Bonds

Swiss Re announced that it has successfully settled its first Australian dollar bond today with a perpetual subordinated step-up notes transaction, totaling A$750 million (US$620 million).

Swiss Re noted that the “two-tranche transaction represents one of the first issues of hybrid debt denominated in Australian dollars by a non-Australian issuer. The offering was structured using a repackaging vehicle (ELM B.V.) that issued notes secured over perpetual subordinated step-up loan notes issued by Swiss Reinsurance Company” (See IJ web site April 18, 24).

The issue “attracted strong investor demand, predominantly from local investors,” said the bulletin. The A$300 million (US$248 million) fixed-rate tranche was priced at 7.635 percent while the A$450 million (US$372 million) floating tranche pays a coupon of 6m BBSW + 117 bps, in each case for the first 10 years.