Talanx AG, one of Europe’s major insurance and financial services groups, has secured new financing totaling €1 billion through a dual bond issuance to strengthen its capital structure and refinance upcoming debt maturities.
The company said it has issued 500 million euros of senior unsecured bonds to numerous institutional investors in Germany and international markets.
At the same time, its major shareholder HDI VaG subscribed for a further 500 million euros in bonds through a private placement on the same terms.
Talanx AG said both euro-denominated bonds have a fixed coupon of 3.75% and will mature on April 9, 2033. Proceeds will be used primarily to refinance existing debt due July 23, 2026, which totals €1.25 billion.
Talanx AG added that the bond has been assigned an “AA-” rating by Standard & Poor’s and will be listed on the Luxembourg Stock Exchange.
The deal was arranged by Barclays, Deutsche Bank, ING, Natixis and BNP Paribas.
