Uniqa lifts 20-year green notes to €375 million, notes sold at 99.316

By Devika Patel

Knoxville, Tenn., Dec. 3 – Uniqa Insurance Group AG will sell €375 million of 20-year green unsecured subordinated Tier 2 notes (S&P: BBB) at 99.316, according to a market announcement. There is a 5% greenshoe for the deal, which was originally expected to sell €300 million of notes.

As previously reported, the notes have 10 years of call protection.

J.P. Morgan AG is the stabilization coordinator, and Raiffeisen Bank International is the stabilization manager.

“The rating on the proposed notes will be two notches below our A- long-term issuer credit rating on Uniqa. This reflects our standard approach for rating subordinated debt issues. We believe two notches are sufficient to reflect the payment risk and subordination on these notes,” S&P said in a Nov. 29 press release when assigning a BBB rating to the bonds.

Uniqua will use the proceeds to finance or refinance eligible assets as defined by its green bond framework, up to the principal amount.

“We understand that Uniqa plans to issue these notes as part of its announced debt liability management. In particular, Uniqa would use the proceeds of new issuance to simultaneously buy back the commensurate amount of its hybrids issued in 2013 and 2015,” the agency added in the Nov. 29 release.

The insurance group is based in Vienna.

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