Paris, 27 May 2014
CNP Assurances completed a €500-million issue of subordinated bonds with a final maturity date of 5 June 2045 and a first-call date of 5 June 2025.
The order book totalled around €5 billion, from more than 350 investors, a successful performance that confirms institutional investor interest and confidence in the CNP Assurances signature.
The issue was structured to be recognized as capital under both insurance regulations and Standard & Poor’s rating rules. Under Solvency 1 standards, it will be eligible for inclusion in regulatory capital, while under Solvency 2, it should be considered as Tier 2 capital, according to the latest EIOPA technical specifications.
The bonds will pay a 4.25% fixed rate of interest over the first 11 years and subsequently adjusted every five years. This is the third lowest coupon paid in the European insurance industry for euro-denominated subordinated debt eligible for inclusion in Tier 2 capital under Solvency 2 rules. For CNP Assurances, it is the lowest fixed coupon paid since the Group’s inaugural subordinated issue in 1999.
Proceeds from the issue will be used to refinance bonds maturing in the near future.
The new bond should be rated BBB+ by Standard & Poor’s, using the rating methodology applied to hybrid debt.
Settlement is scheduled for 5 June 2014.
The prospectus may be downloaded from www.cnp-finances.fr and www.amf-france.org.