Crédit Agricole Assurances successfully places a €500,000,000 issue of subordinated Tier 2 notes at a fixed annual rate of 5.875% and sets the maximum principal acceptance amount of its previously launched Tender Offers at €500,000,000.
Crédit Agricole Assurances announced today:
(i) the successful placement of a 10-year fixed rate Tier 2 Subordinated Notes issue for a principal amount of €500,000,000 (the “New Issue”); and
(ii) set the maximum acceptance amount of its tender offers relating to two tranches of undated subordinated notes issued in 2014 and 2015 launched on 16 October 2023 (the “Tender Offers”) at €500,000,000.
The Tender Offers and the New Issue are part of Crédit Agricole Assurances’ active capital management policy.
The New Issue has been structured for the newly issued notes (the “Notes”) to be eligible for Tier 2 capital under Solvency II. The Notes will bear interest at a fixed rate of 5.875% per annum until maturity in 2033. It is contemplated that the Notes will be rated by Standard & Poor’s with an “expected” BBB rating and that an admission to trading on the regulated market of Euronext Paris will be sought, subject to the approval by the Autorité des marchés financiers of a prospectus which will set out the terms and conditions of this New Issue. The transaction received strong investor demand, resulting in an issue subscribed nearly four times. Settlement and delivery of the Notes is scheduled for 25 October 2023.
Following the placing of the New Issue, Crédit Agricole Assurances also announces that it will set the maximum amount of its Tender Offers up to the principal amount of the New Issue, i.e. €500,000,000 (the “Maximum Acceptance “). Crédit Agricole Assurances may increase or decrease the Maximum Acceptance Amount. Crédit Agricole Assurances will announce the final acceptance amount of existing notes to be repurchased under its Tender Offers (the “Existing Notes“), as well as the allocation between each series of Existing Notes at its sole discretion upon publication of the final results of the Tender Offers.
As previously announced, the Existing Notes which are the subject of the invitation to the holders of the Existing Notes (the “Holders“) to tender their notes for repurchase by Crédit Agricole Assurances are undated subordinated notes issued in 2014 and 2015 by Crédit Agricole Assurances, currently benefiting from a grandfather clause, with an outstanding principal amount of €1 billion (ISIN FR0012444750) and €750 million (ISIN FR0012222297) respectively, and bearing interest at fixed annual rates of 4.25% and 4.5% resettable respectively on 13 January and 14 October 2025:
THIS PRESS RELEASE MAY NOT BE DISTRIBUTED IN THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN.
The Tender Offers started on 16 October 2023 and will expire on 23 October 2023. The terms and conditions of the Tender Offers are set out in the Tender Offer Memorandum dated 16 October 2023, which sets out, among other things, the restrictions on the Tender Offers. The final results of the Tender Offers will be announced on 24 October 2023 (subject to any extension, withdrawal, termination or change in the timeline of the Tender Offers).
Uptevia acts as Tender and Information Agent in connection with the Tender Offers. Holders eligible to participate in the Tender Offers may direct any questions regarding the procedures for tendering their Existing Notes to Uptevia and request from Uptevia to provide them with a copy of the Tender Offer Memorandum by telephone at +33 (1) 57 78 11 57 or by email at sylvie.benacom@uptevia.com or at CT-service-ost@uptevia.com.
Crédit Agricole Assurances is rated A-/stable outlook by Standard & Poor’s
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