CNP Assurances has successfully placed $700 million of subordinated Restricted Tier 1 notes.
These perpetual notes bear a 4.875% fixed rate until 7 April 2031. They feature a principal write-down mechanism together with a mandatory interest cancellation in case of solvency deficiency of CNP Assurances, as required by the Solvency II directive.
The notes were swapped into EUR for a 10-year period providing an effective yield cost to CNP Assurances of 2.852%.
This issuance will allow CNP Assurances to prepare next call dates and to optimize its capital structure, while maintaining its financial flexibility to issue Restricted Tier 1, Tier 2 and Tier 3 subordinated notes. The proceeds of the notes will be eligible for inclusion in Solvency II regulatory capital.
The notes were placed with nearly 200 investors, 77% of whom are asset managers, insurers and hedge funds, and 23% are public investors and banks. It was subscribed by investors from the UK/Ireland (37%), Asia (28%), France (12%), Switzerland (9%), Benelux (5%) and other countries (9%). The issue was almost four times oversubscribed with a total order book of $2.7 billion, attesting to their confidence in CNP Assurances’ financial strength.
The notes are rated BBB by S&P, Baa3 by Moody’s and BBB- by Fitch.
Settlement is scheduled for 7 April 2021. The final terms of the issue will be published on the Company’s website, www.cnp.fr and on the Autorité des Marchés Financiers’ website, www.amf-france.org.