Generali is offering to repurchase up to €1 billion aggregate principal amount of three series of its subordinated notes.
The repurchase offer is 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 repurchase invitation expires Sept. 20.
The offer aims to refinance the company's subordinated notes, which will bring it closer to its 2021 strategy objectives. The transaction is expected to allow Generali to decrease external financial debt by about €250 million, cut interest costs in future years and attain a more balanced maturity profile while optimizing its regulatory capital structure.
Additionally, Generali will issue its first-ever green bond in the form of euro-denominated fixed-rate Tier 2 notes due 2030 under its €15 billion euro medium-term note program.
