CNP Assurances launches first subordinated sustainable bond

Written by Adam Cadle

12/01/2023

CNP Assurances has successfully launched its first subordinated sustainable bond for an amount of €500m.

The fixed annual coupon is 5.25% until 18 July 2033 and then will be floating beyond this date and until its maturity. Furthermore, the notes were placed next to 88 investors, 66% of whom were asset managers, 25% insurers and pension funds, 5% central banks and official institutions and 4% others, based in Germany/Austria/Switzerland (22%), Southern Europe (21%), Benelux (18%), UK/Ireland (17%), France (15%), Nordics (3%) and others countries (4%).

The sustainable subordinated bond will mature on 18 July 2053 with early redemption options from 18 January 2033. This issue constitutes Tier 2 regulatory capital in accordance with Solvency II regulations.

The funds raised through this operation will be exclusively used to finance or re-finance, in part or in full, new and/or existing eligible sustainable assets (green and/or social) as set out and defined in the insurer’s Sustainability Bond Framework.

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