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Insurer Allianz SE is looking to buy back its €1.5bn old style 3.875% Fixed-for-life Perp as it is set to lose regulatory value at the end of 2025, due to the Solvency II regime. The Solvency II regime which came into force in 2016, dictates capital requirements for the insurers and grants a 10-year grace period to deal with junior bonds that don’t satisfy the regulations. The company priced a new €1bn Tier 2 today at a yield of 4.85%. According to the data compiled by Bloomberg, there are still €13.8bn of Solvency II grandfathered notes by European Insurers outstanding.
Allianz’s 3.875% Perp bond currently trades at 70.5 cents on the dollar, yielding 5.5%
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