Based on the positive feedback of the investor roadshows earlier this week, Helvetia Schweizerische Versicherung AG (Helvetia) started the financing of the cash component of the Nationale Suisse transaction and placed today a dual tranche hybrid bond of CHF 525 million. As an innovation in the Swiss market, Helvetia offered a dated hybrid instrument with a tenor of 30 years and a first non-call period of 10 years, complemented by a perpetual hybrid instrument with a first non-call period of 5.5 years.
The instruments were sought after by a broad investor base consisting of private and institutional investors resulting in a combined demand of CHF 525 million. The first fixed annual coupon on the dated instrument is 4% for an issuance size of CHF 200 million, while the perpetual instrument took on the larger part of the aggregated issuance with CHF 325 million and a first fixed annual coupon of 3.5%. Both tranches are guaranteed by Helvetia Holding AG and Standard & Poor's has assigned a 'BBB+' Rating, which is derived from the rating of Helvetia ('A' / Credit Watch Negative).
This early start to the financing of the acquisition allows Helvetia to reduce the drawdown of the fully committed bridge loan, which has been put in place to back the cash component of the Nationale Suisse transaction. Helvetia will continue to manage the refinancing of this bridge loan over the course of the next months, making best use of market conditions.
This media release is also available on the home page www.helvetia.com/media