Ageas successfully places €500m Tier 2 notes to strengthen regulatory solvency

Written by Adam Cadle

27/11/2020

Ageas has successfully placed debt securities in the form of €500m subordinated fixed to floating rate notes maturing in November 2051 and with a first call date in 2031.

The notes will be issued in denominations of €100,000 with a fixed coupon rate of 1.875% payable annually until the first reset date (24 November 2031). As of the first reset date, the coupon becomes payable quarterly at a 3-month Euribor floating rate increased with an initial credit spread and a 100 basis points step-up.

The notes will qualify as Tier 2 capital for both the group and Ageas under European regulatory capital requirements for insurers (Solvency II) and are rated A- by Standard & Poor’s and BBB+ by Fitch. Application has been made for the notes to be listed on the official list and admitted to trading on the regulated market of the Luxembourg Stock Exchange.

The net proceeds from the notes are expected to be used for general corporate purposes and to optimise the capital structure and strengthen the regulatory solvency of the group and its operating subsidiaries.

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