On 16 September, Generali announced the cash buyback of three series of subordinated bonds and the launch of a new green bond. Today, 23 September, the Compagnia del Leone provides the first non-binding indicative results relating to the repurchase.
In detail, "at the expiry of the invitation, the offeror received valid offers" for the repurchase of 252,5 million pounds of the bonds "Gbp 495.000.000 Fixed/Floating Rate Perpetual Subordinated Notes". 448 million the equivalent value relating to the issue of the “Eur 750.000.000 Fixed/Floating Rate Notes due July 2042” bonds, while 265,8 million euros will be put on the plate for the “Eur 1.250.000.000 Fixed/Floating Rate Notes due December 2042”. In the latter case, the group has announced an indicative and non-binding Allotment Factor of 38,4%.
The settlement date has been set for next October XNUMXst, the day on which Generali will pay the bondholders the purchase price and the interest accrual in relation to the securities to be repurchased.
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Assicurazioni Generali announces the final results of the repurchase of three series of subordinated notes with first call date in 2022. At the expiry of the repurchase offer, the aggregate principal amount of all the Notes offered amounted to €1,5 billion which represents approximately 59.1% of the total nominal amount of the Notes outstanding equal to 2.56 billion.
Generali also today placed a new Tier 2 security denominated in euro with a bullet structure and maturity in October 2030, which will be issued in the form of a green bond. The issuance represents the first green bond issued by a European insurer and has raised final orders in excess of €2,7 billion, or around 3,6 times the offer, from a highly diversified base of international institutional investors, including a presence number of funds with Green/SRI mandates. The coupon of the new bond is also the lowest ever paid by Generali on a subordinated bond.
The CFO of the Cristiano Borean Group commented: “These two operations will reduce our external debt by approximately 250 million. Furthermore, they will lead to a reduction in annual gross interest expenses of approximately €68 million, meaning that the Group will exceed the higher value of the interest expense reduction target of €70-140 million announced last year. These two important goals have been achieved in less than a year since their announcement. I am also particularly happy with the positive reception received by our first green bond, clear testimony of the fact that Sustainability is concretely part of our business model”.
