Swiss Re successfully issues AUD 750 million of hybrid securities
27 April 2007, Sydney
Swiss Re has successfully issued a total of AUD 750 million of hybrid debt securities, its first foray into the Australian dollar bond market.
Swiss Re successfully settled its first Australian dollar bond today with a perpetual subordinated step-up notes transaction. This two-tranche transaction represents one of the first issues of hybrid debt denominated in Australian dollars by a non-Australian issuer. The offering was structured using a repackaging vehicle (ELM B.V.) that issued notes secured over perpetual subordinated step-up loan notes issued by Swiss Reinsurance Company.
The transaction attracted strong investor demand, predominantly from local investors. The AUD 300 million fixed-rate tranche was priced at 7.635% while the AUD 450 million floating tranche pays a coupon of 6m BBSW + 117 bps, in each case for the first 10 years.
Notes to editors
Swiss Re is the world's leading and most diversified global reinsurer. The company operates through offices in more than 25 countries. Founded in Zurich, Switzerland, in 1863, Swiss Re offers financial services products that enable risk-taking essential to enterprise and progress. The company's traditional reinsurance products and related services for property and casualty, as well as the life and health business are complemented by insurance-based corporate finance solutions and supplementary services for comprehensive risk management. Swiss Re is rated "AA-" by Standard & Poor's, "Aa2" by Moody's and "A+" by A.M. Best.
This announcement does not constitute an offer to sell or the solicitation of an offer to subscribe or purchase any of the securities described herein in Switzerland, in the European Economic Area ("EEA"), in the United States or in any other jurisdiction.Any such offer was made solely by means of an offering memorandum in compliance with applicable securities laws. The hybrid securities were not registered under the US Securities Act of 1933 and were not offered and sold in the United States.
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