dennis-kessler_scor
Denis Kessler, CEO of SCOR, during a presentation at the 2018 Monte Carlo Rendez-Vous
11 September 2020Insurance

SCOR places €300m subordinated Tier 2 notes for 'corporate purposes'

French reinsurer SCOR has placed a dated subordinated Tier 2 notes issue in the amount of €300 million.

SCOR intends to use the proceeds of the issuance for general corporate purposes.

The proceeds from the notes are expected to be eligible for inclusion in the Tier 2 regulatory capital, in accordance with applicable rules and regulatory standards, and as equity credit in the rating agency capital models.

The coupon has been set to 1.375 percent until September 17, 2031, and resets every 10 years at the prevailing 10-year EUR mid-swap rate + 2.6 percent. The 31NC11 notes mature on September 17, 2051.

The notes are expected to be rated A by Standard & Poor’s. Settlement is expected to take place on September 17, 2020.

The reinsurer also intends to redeem the CHF 125 million undated subordinated notes, issued on October 20, 2014, and callable in October 2020, already refinanced from the proceeds of the $125 million notes issued in 2019.

Denis Kessler, chairman and chief executive officer of SCOR, said: “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.”

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