Sava Re issued a subordinated bond with scheduled maturity in 2039 and with a first call date on 7 November 2029.

Following up on Sava Re considering options for issuing subordinated bonds, the company published yesterday an announcement on the Ljubljana Stock Exchange stating that they have successfully issued a subordinated bond with scheduled maturity in 2039 and with a first call date on 7 November 2029.

The Group notes that they intend to use the proceeds for general corporate purposes of Sava Insurance Group and for the optimisation of its capital structure. The capital raised qualifies as Tier 2 Capital under Solvency II regulations, while the total issue size is EUR 75m.

As a reminder, as of 31 December 2018, the Group’s eligible own funds to meet the Group Solvency Capital Requirement amount to EUR 471.9m, of which the whole amount refers to Tier 1. As of 31 December 2018, Sava Re stands at solid capitalization levels, with Solvency ratio at 218% (EUR 255.2m).

Until the First Call Date, the annual interest rate will be fixed at 3.750%, with the coupon payable annually. Thereafter, unless previously redeemed, the Bonds will bear interest at a rate of 4.683% per annum above the 3-months EURIBOR, with the coupon payable quarterly.