French Credit Insurer Coface launches $1-Billion IPO

The french credit insurer Coface has launched an initial public offering (IPO) worth up to 895-million euros ($1,2-billion). Coface is fully owned by French investment bank Natixis, who will be reducing its share in Coface.

Coface is the world's third-largest credit insurer, offering insurance to protect companies against default by customers. The IPO closes on June 25 and will be priced on June 26 for the CAC listing.

Coface began to diversify internationally in 1992. The group has 4 400 employees working in 66 countries worldwide including Sub-Saharan Africa and emerging economies.

Global Credit Ratings Company (GCR) recently affirmed a claims paying ability rating of AA+ for Coface South Africa with a stable outlook.

GCR says the credit rating is based on a number of key factors:

• Coface South Africa’s experience in the South African market for more than 20 years.

• The guarantee provided to Coface South Africa by Cofinpar, a 100%-owned group subsidiary, as well as a letter of continuing support from the ultimate parent company, which provides significant rating support.

• The high degree of reinsurance support from the Coface Group which provides Coface South Africa with access to business from key multinational clients, technical expertise and operational platforms.

• The underwriting criteria applied has ensured profitability on a gross and net basis over the review period, which is expected to continue going forward.