Banca Generali SpA launched a €50 million issuance of additional Tier 1 instruments, to be issued on Dec. 23.

The instruments will carry a fixed non-cumulative half-yearly coupon of 4.5% per annum until Dec. 23, 2024, following which the coupon will be recalculated every five years.

The securities are perpetual and callable by the issuer on Dec. 23, 2024, and subsequently on each coupon payment date.

The instruments will be fully subscribed to by two Germany-based non-life companies of Generali under a mandate granted to Generali Ins Asset Mgmt SpA Società di gestione del risparmio Rch Division.

The issuance will replace a Tier 2 loan granted by another German insurance company.