Generali has completed its offer to repurchase up to €1 billion aggregate principal amount of three series of its subordinated notes, as well as the placement of its first green bond.
The two transactions will decrease the company's debt by about €250 million. The repurchase offer was for the fixed/floating-rate perpetual subordinated notes with an outstanding principal amount of £495 million and a first call date of Feb. 8, 2022; the fixed/floating-rate notes due July 2042 with an outstanding principal amount of €750 million; and the fixed/floating-rate notes due December 2042 with an outstanding principal amount of €1.25 billion.
The Italian insurer also revealed the final results of the offer. At the expiration of the offer, the aggregate principal amount of all the subordinated notes tendered surpassed €1.5 billion equivalent. However, Generali will accept for purchase only an aggregate principal amount of €1 billion equivalent of the three series of notes.
Additionally, Generali launched on Sept. 23 a new €750 million fixed-rate Tier 2 bullet bond due Oct. 1, 2030, issued in the form of a green bond. The issuance represents the first green bond issued by a European insurance company.
The notes carry an annual coupon of 2.124%, with the first coupon date on Oct. 1, 2020, and were issued at 100.00%.
The settlement date of the offer and for the Tier 2 notes is Oct. 1.
For the offer, Banco Bilbao Vizcaya Argentaria SA, Crédit Agricole Corporate and Investment Bank, Deutsche Bank AG — London Branch, J.P. Morgan Securities PLC, Mediobanca – Banca di Credito Finanziario SpA, Merrill Lynch International, Morgan Stanley & Co. International PLC and Société Générale are acting as dealer managers. Deutsche Bank AG's London branch and Merrill Lynch International are structuring advisers. The tender agent for the offer is Lucid Issuer Services Ltd.
Crédit Agricole Corporate and Investment Bank and Société Générale are serving as green structuring advisers of the new notes.
