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Not for distribution in or into the U.S., Canada or Japan
SCOR successfully places on the Swiss franc market perpetual subordinated notes with a first call date in June 2018, for an aggregate total amount of CHF 250,000,000.
The strong market demand that has enabled SCOR to achieve this issuance bears witness to the attractiveness of the SCOR group’s credit, the performance of SCOR’s existing bonds, and the confidence of investors in SCOR’s “Strong Momentum V1.1” strategic plan.
The coupon has been set to 5.25% (until 8 June 2018) and resets to 3-month CHF LIBOR plus a margin of 4.8167% thereafter.
The notes’ expected ratings are A- / A3 (hyb) by Standard & Poor’s and Moody's, respectively.
The settlement of the notes is expected to take place on 8 October 2012.
The proceeds from the notes are expected to be eligible for inclusion in SCOR’s solvency margin in accordance with the applicable rules and regulatory standards, and in the capital credit of the capital models of rating agencies. The proceeds will be used to:
- support SCOR’s current strategic plan “Strong Momentum V1.1”;
- create further financial flexibility as part of SCOR’s capital management strategy;
- further optimize the financial structure of the SCOR group;
- fund any growth opportunities falling within SCOR’s strategic cornerstones; and/or
- fund its general corporate needs.
The Group launched its strategic plan “Strong Momentum” in September 2010, updated in September 2011 (“Strong Momentum V1.1”). The plan is based on four key principles consistently applied over time: high diversification, robust capital shield, strong franchise and controlled risk appetite. It aims notably to offer an “AA” level of security to clients. The placement of CHF 250 million perpetual subordinated notes represents an interesting opportunity for SCOR to optimize its financial structure while retaining some leverage at the low end of its planned range (at 20.4% post-issuance based on H1 2012 results), to further execute its active capital management strategy and, accordingly, to optimally position SCOR for the successful achievement of its strategic targets.
Denis Kessler, Chairman and CEO of SCOR, comments: “SCOR is taking advantage of favourable market conditions to optimize its financing in order to complete its “Strong Momentum V1.1” plan. This successful placement is a renewed sign of investors’ confidence in SCOR’s financial strength and business development, which were further underlined by the upgrades granted this year by the four rating agencies. This new placement on the Swiss franc market also reflects the SCOR group’s desire to be financially active in Switzerland where it is listed on the SIX Swiss Exchange.”
