Swiss Re Capital Markets closes largest ever European Wind cat bond transaction for Groupama SA
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Swiss Re Capital Markets has successfully arranged the issuance of EUR 280 million of insurance-linked securities by Green Fields II Capital Limited ("Green Fields II") on behalf of Groupama S.A. The securities cover windstorms in France.
Swiss Re Capital Markets underwrote the transaction which covers French windstorm losses for three and a half years. The bond was structured as part of the Green Fields II Capital Limited Principal At-Risk Variable Rate Note Program. Green Fields II Capital Limited is an Irish special purpose company established with limited liability.
The proceeds of the Notes collateralize a counterparty contract with Swiss Reinsurance Company Ltd ("Swiss Re"), providing per-occurrence protection against France windstorm on a PERILS index basis. Swiss Re, in turn, entered into a reinsurance agreement providing France windstorm protection to Groupama.
Jean-Louis Monnier, Director and Head of ILS Europe at Swiss Re Capital Markets, comments: "We are pleased to support Groupama's access to the capital markets by closing this landmark transaction. Swiss Re is the counterparty to the special purpose vehicle and in turn provides Groupama with a cover which combines the benefits of reinsurance and cat bond collateralization. As the largest Europe windstorm transaction and largest Euro-denominated deal to date, this issuance further demonstrates the depth of the ILS market and its ability to complement reinsurance for European perils."
This placement is the first issuance from the newly established Green Fields II shelf program and the fourth for Groupama.
Swiss Re Capital Markets acted as sole arranger.
Standard & Poor's has published a BB (sf) rating for Green Fields II notes.
The Green Fields II notes were sold pursuant to Rule 144A of the U.S. Securities Act of 1933, as amended (the “Securities Act”) and have not been registered under the Securities Act or any state securities laws; they may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject, to the registration requirements of the Securities Act and applicable state securities laws.
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