Vienna Insurance Group, Eastern Europe’s biggest insurer, plans to sell 30-year subordinated debt, according to an e-mailed statement today.
The volume of the issue probably will be 500 million euros with the option to increase by a maximum of 70 million euros, according to the statement.
The bond, which will be callable after ten years by the issuer, is aimed at institutional investors. Vienna Insurance also intends to offer the bond in the retail segment in Austria, the Czech Republic, Germany, Luxembourg and “perhaps in Switzerland,” it said in the statement.
“The proceeds from the bond issue will be used to further strengthen the financial base of Vienna Insurance Group, to finance continuing growth in central and eastern Europe as well as to prepare for meeting the capital adequacy requirements under the Sovency II directive,” according to the statement.
Source : Bloomberg
