CNP Assurances has successfully completed its first Tier 3 subordinated issue of the year, placing €500 million worth of seven-year notes due 27 January 2029 and paying interest at 1.25%. The notes qualify as Tier 3 capital under Solvency II.
The notes were placed with more than 90 investors, 75% of whom were asset managers, 19% insurers and pension funds and 5% private banks, based in France (29%), Northern Europe (21%), Benelux (19%), Germany/Austria (15%), UK/Ireland (9%) and other countries (7%).
The issue was more than 2.2 times oversubscribed with a total order book of €1.1 billion, attesting to investor confidence in CNP Assurances' financial strength.
The notes are rated A- by Standard & Poor’s and BBB+ by Fitch.
This issuance will ensure that CNP Assurances has the funds in place to meet its upcoming debt maturities while maintaining the financial flexibility to issue subordinated notes.