Hannover Re issues additional hybrid capital

09 September 2014

Hannover Re has today successfully placed a new EUR 500 million subordinated bond on the capital market. The issue was placed predominantly with institutional investors in Europe.

The issue has a perpetual maturity with a first scheduled call option for Hannover Re after approximately ten years. It carries a fixed coupon of 3.375% p.a. until this date, after which it can be called at each coupon date and the interest rate basis changes to 3-month EURIBOR + 325 basis points. The banks mandated to handle this transaction were Commerzbank - as the structuring advisor - as well as Barclays Bank, Citigroup and Crédit Agricole.

Hannover Re traditionally uses hybrid bonds to optimise its cost of capital. Following this successful new issue the company has four hybrid bonds outstanding on the capital market.

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