French reinsurance company SCOR has announced that it has successfully placed a dated subordinated Tier 2 notes issue amounting to €300 million (USD 355 million).
SCOR says that the proceeds of the issuance will be used for general corporate purposes, with settlement expected to occur on September 17th, 2020.
The coupon is set at 1.375% until September 17th, 2031, and resets every decade at the prevailing 10-year EUR mid-swap rate +2.6%. The 31NC11 notes mature on September 17th, 2051.
SCOR expects the proceeds from the notes to be eligible for inclusion in the Tier 2 regulatory capital, in accordance with applicable rules and regulatory standards, and also as equity credit in the rating agency capital models. SCOR expects that S&P Global Ratings will assign the notes an A rating.
Additionally, SCOR has confirmed that it plans to redeem the CHF 125 million undated subordinated notes, issued October 20th, 2014, and callable in October 2020, already refinanced from the proceeds of the USD 125 million notes issued in 2019.
SCOR’s Chairman and Chief Executive Officer (CEO), Denis Kessler, commented: “With this successful placement, SCOR continues to benefit from exceptional market conditions in a low yield environment. The success of today’s Euro placement enables us to further secure attractive long-term financing to support the future organic growth of the Group. The notes were oversubscribed by 9 times, which confirms the very high level of confidence placed in the Group by the credit market.”
