Major financial maneuvers in the Generali house. In fact, the Trieste-based group is continuing its path of debt reduction and capital sustainability: the latest operations announced concern an offer of cash repurchase of three series of securities with first call date in 2022, with the aim of repurchasing up to an aggregate nominal amount of securities corresponding to the nominal amount of new subordinated Tier 2 securities in “green” format.
The new issue will therefore represent the second green bond issued by Generali and will have an aggregate nominal amount not exceeding 600 million euros. The buyback transaction aims to efficiently refinance the subordinated securities with early repayment dates between February 2022 and December 2022. Priority will be given, explains a note, to the subordinated security with early repayment date December 12, 2022.
The buyback and the new issue will allow Generali to continue further in the interest rate reduction path for the financial debt in continuity with the similar transaction announced in September 2019 (concerning the same series of securities involved in the offer referred to in this press release) at the end of which the Lion had repurchased a total principal amount of 1 billion euro of the securities of the three series and issued its first green bond for an aggregate nominal amount of 750 million euro.
“The operation – commented Generali Group CFO, Cristiano Borean – aims to achieve a more balanced debt maturity profile and reduce interest expense in future years. The issue of our second green bond represents another important step in the sustainability path started by the Generali Group”. Tier 2 subordinated notes maturing in 2031 will be issued in a "green" format, pursuant to its "Euro Medium Term Note" program and intended, at market conditions, for qualified investors. The bond will also comply with the "Green Bond Framework" defined by Generali in May 2019, already the subject of a Second Party Opinion issued by Sustainalytics.
Generali's commitment to sustainability has been recognized, among other things, by the recent inclusion of the Generali Group in the “2020 Global 100 Most Sustainable Corporations” of Corporate Knights and in the Dow Jones Sustainability Europe Index, after the already known presence in the Dow Jones Sustainability World Index. Generali has also joined the Net-Zero Asset Owner Alliance, a group of 18 pension funds and insurance companies, created on the initiative of the United Nations, with a commitment to decarbonise their portfolios.
For details of the new green issue, you can consult the site of the Generali group.
