Allianz to repay Miles convertibles with Munich Re stock

New York, Jan. 16 - Allianz AG said it will repay its remaining Market Index-Linked Equity Securities (Miles) exchangeable at maturity with shares of Münchener Rückversicherungs-Gesellschaft AG (Munich Re).

The Miles securities, issued in 2001, mature on Feb. 23.

Holders will receive shares based on the average level of the German DAX index and average price of Munich Re stock during the calculation period, which will be Jan. 26 to Feb. 20.

The Munich Re shares will be delivered on March 2.

UBS Investment Bank AG is calculation and principal paying and exchange agent.

Allianz, a Munich-based financial services group, issued €2 billion of the Miles in January 2001 via Allianz Finance II BV. The company has the option to redeem them at maturity with the stock of E.ON AG, BASF AG, Munich Re or certain other shares. In addition to the relevant ratio between the DAX index and the stock to be issued, investors also receive a 1.25% outperformance premium.

Last August Allianz redeemed early 50% of the Miles, issuing Munich Re stock in exchange.

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