Helvetia issues hybrid bond and successfully completes financing of Caser acquisition
Helvetia Europe, a Luxembourg subsidiary of Helvetia Swiss Insurance Company Ltd in St.Gallen, has issued a subordinated hybrid bond amounting to EUR 600 million with a first optional call date 2031. The bond has a fixed coupon until its first optional call date of 2.75%. The hybrid bond serves to complete the financing of the majority holding in the Spanish insurance company Caser (Caja de Seguros Reunidos, Compañía de Seguros y Reaseguros S.A.) after Helvetia already successfully issued new shares as part of a capital increase on 19 June 2020. “Despite a challenging market environment, Helvetia has made use of the current positive market dynamics to implement its announced financing strategy for the acquisition of Caser”, explains Paul Norton, Chief Financial Officer of the Helvetia Group. The proceeds from the hybrid bond will largely be used to finance the acquisition of Caser and for general corporate purposes. Helvetia expects to be able to complete the acquisition of Caser by the end of June. The acquisition will further strengthen the European business as a second pillar, significantly expand the attractive non-life business and increase the company’s sales reach in Spain. Deutsche Bank, UBS, Credit Suisse, Natixis and Morgan Stanley have acted as joint lead managers for the transaction.
Helvetia places CHF 400 million hybrid-bond dual-tranche
Helvetia Swiss Insurance Company Ltd. in St.Gallen issued a CHF 275 million perpetual subordinated hybrid-bond, first callable in August 2026. The bonds bears a fixed coupon of 1.5 percent until its first optional call date. At the same time, Helvetia placed a CHF 125 million dated subordinated bond, which matures in 2040, carrying a coupon until its first optional call date in August 2030 of 1.45 percent. «The placement of the hybrid-bonds on the CHF capital market has taken advantage of the current positive market environment», commented Paul Norton, Chief Financial Officer of Helvetia Group. The proceeds will be used for general corporate purposes, including future refinancing of outstanding subordinated debt instruments in accordance with applicable laws and regulations. Credit Suisse, Deutsche Bank and UBS acted as joint lead managers to the transaction as well as Raiffeisen Schweiz and Zürcher Kantonalbank as co-managers.