29.09.2016

Crédit Agricole Assurances successfully places a €1 billion issue of Subordinated Fixed Rate Resettable Notes

Crédit Agricole Assurances has announced today the successful placement of a €1 billion issue of Subordinated Resettable Notes (the “Notes”).

The prospectus for the issue includes a full description of the terms and conditions of the Notes. The Notes due on 2048 will bear a fixed interest rate of 4.75% pa until the first call date in September 2028, after which date the rate will be reset. Interest payments may be deferred if Crédit Agricole Assurances group’s solvency requirement is not met, or at the request of the relevant supervisory authority’s (the “Supervisor,” currently the Autorité de contrôle prudentiel et de résolution) or, at the issuer’s option. Deferrals at the issuer’s option are subject to conditions relating to the payment of dividends by Crédit Agricole Assurances.

 

The Notes may be redeemed at the issuer’s option on 27 September 2028. After this date, they may be early redeemed at the issuer’s option on each annual coupon payment date.Redemption of the Notes is subject to certain conditions including the prior approval of the Supervisor.

The Notes have been placed with institutional investors in Europe. The quality and diversity of the order book, 2.7 times oversubscribed, reflects the positive view investors have of Crédit Agricole Assurances.

The Notes will be used to finance the growth of the activity and to strengthen Crédit Agricole Assurances group’s capital in order to maintain a Solvency 2 ratio in line with its ambitions.

Crédit Agricole Assurances is rated BBB+/stable outlook by Standard & Poor‘s. The Notes rated BBB- by Standard & Poors.

The settlement of the Notes takes place on 27 September 2016.

The transaction has been structured for the notes to be eligible as Tier 2 capital under Solvency II. The Notes will be treated as capital from a regulatory and Standard and Poors’ perspective within applicable limits.

The issue prospectus, which was granted visa no. 16-446 on 23 September 2016 by the Autorité des marchés financiers (the “AMF”), is available free of charge on the issuer’s website (http://www.ca-assurances.com/espace-investisseurs/notations-et-financements) and on the AMF website (www.amf-france.org) (www.amf-france.org).

Crédit Agricole Assurances, Europe's leading bank insurer, holds all of Crédit Agricole's insurance entities. The group offers a range of products and services for savings, retirement, health, death & disability and property insurance. They are distributed via Crédit Agricole group banks in France and in 10 other countries worldwide, by wealth management advisers and insurance agents. Crédit Agricole Assurances companies meet the needs of individuals, professionals, farmers and businesses.

Crédit Agricole Assurances has 4,000 employees. Its sales at the end of 2015 amounted to €30.4 billion (IFRS).