Hannover, 13 November 2012:
Hannover Re has today successfully placed a new EUR 500 million subordinated bond in the European debt capital markets via its subsidiary Hannover Finance (Luxembourg) S. A. The issue – which was oversubscribed several times – was placed principally with institutional investors in Europe.
"With this bond issue we are taking advantage of the currently prevailing very attractive level of interest rates to further optimise our capital structure", Chief Executive Officer Ulrich Wallin commented.
The bond has a maturity of approximately 30 years, with a first scheduled call option on 30 June 2023. It carries a fixed coupon of 5.00% p.a. until this date, after which the interest basis changes to a floating rate of 3-month
Hannover Re traditionally uses hybrid bonds to optimise its cost of capital. Following the successful new issue the company has four outstanding hybrid bonds in the capital markets.