AG2R La Mondiale places two subordinated debt issues worth $710m to boost SII reinforcement

Written by Adam Cadle

19/01/2018

AG2R La Mondiale has placed two subordinated debt issues worth $710m as part of its ongoing SII reinforcement program.

These transactions, split into a private placement of $400m on 19 December 2017 and a public offering of $310m on 12 January 2018, led to the issuance of two redeemable subordinated noted with a maturity of 30 years, redeemable at the option of the issuer from the tenth year.

The private placement was completed in Asia and the public offering was subscribed mainly by European investors, both institutional and private.

The rate of each issue is 4.80%, which represents, after currency hedging, a euro interest rate of 2.57% for an overall nominal value of €594m.

Credit Suisse and HSBC were the co-arrangers of the private placement. Credit Suisse and Deutsche Bank were the co-arrangers of the public placement. Allen & Overy was the adviser for both operations.

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