Crédit Agricole Assurances successfully launches a €1 billion issue of Undated Subordinated Fixed Rate Resettable Notes

Crédit Agricole Assurances announces the successful launch on 8 January 2015 of a €1 billion issue of Undated Subordinated Fixed Rate Resettable Notes (the “Notes”), thus becoming the first issuer of subordinated debt in the primary European market in 2015.

The prospectus for the issue includes a full description of the terms and conditions of the Notes. The Notes have no fixed maturity date and will bear a fixed interest rate of 4.25% until 13 January 2025, after which date the rate will be reset. Interest payments may be deferred at the issuer’s option, or if the Crédit Agricole Assurances Group should fail to meet its solvency margin requirement, or at the relevant supervisory authority’s (the “Supervisor,” currently the Autorité de contrôle prudentiel et de résolution) request. Such deferrals are subject to the conditions relating to the payment of dividends by Crédit Agricole Assurances.

The Notes may be redeemed early by the issuer on 13 January 2025. After this date, they may be redeemed at the issuer’s option on each annual coupon payment date, subject to the prior approval of the Supervisor.

The Notes have been placed with institutional investors in Europe. The quality and diversity of the order book reflects the positive view investors have of Crédit Agricole Assurances.

This issue follows a €750 million issuance by Crédit Agricole Assurances successfully completed in October 2014, and forms part of the Crédit Agricole Group and Crédit Agricole Assurances’ capital optimisation policy.

At the Crédit Agricole Group level, the purposes of this issue are to (i) anticipate the impact of the Solvency II framework on its Basel 3 fully-loaded Tier 1 ratio and (ii) partly offset the change in Standard & Poor’s (S&P’s) treatment of hybrids issued by insurance subsidiaries and subscribed by Crédit Agricole Group companies in the calculation of its Risk Adjusted Capital (“RAC”) ratio.

For Crédit Agricole Assurances, the purposes of this issue are (i) to anticipate its adaptation to the future Solvency 2 rules in 2016 and (ii) to finance early repayment of the undated subordinated debt issued by Crédit Agricole Assurances and subscribed by Crédit Agricole S.A and the growth of Crédit Agricole Assurances’ business.

Crédit Agricole Assurances has an A/negative outlook rating from Standard & Poor ‘s. The Notes have been rated BBB- by Standard & Poors.

The issue prospectus, which was granted visa no. 15-018 on 09 January 2015 by the Autorité des marchés financiers (the “AMF”), is available free of charge on the Issuer’s website (http://www.ca-assurances.com/en/investors/ratings-and-fundings) and on the AMF website (www.amf-france.org) (www.amf-france.org).