CCR Re has successfully placed EUR300m ($342m) of Tier 2 subordinated bonds in what is the company’s maiden bond issue.
The bonds were quickly placed with more than 150 investors, mainly based in France, Europe and Asia, with a total order book of more than EUR1.5bn. It was issued with a margin of 310 basis points above the mid-swap rate.

The proceeds of the issue will be applied by CCR Re for its general corporate purposes.

CCR Re said in a statement, “This great success shows CCR Re’s financial strength and good prospects. With this issue, CCR Re strengthens its development, in line with its Streamline business plan, and will even better support its customers with a stronger solvency.”

Mr Bertrand Labilloy, Chairman & CEO, said that the issue sets a milestone in CCR Re history. “Its success, notably in the form of an oversubscription of more than five times, shows the market confidence in the strategy, performance and financial strength of the company.”

The bonds will mature in 2040 with a first early redemption date at the option of the issuer in 2030. The bonds have an annual fixed coupon of 2.875% until 15 July 2030 and a variable quarterly coupon after this date. They should be recognised as hybrid capital by the rating agencies and rated BBB+ by S&P.

CCR Re is ‘A’ rated by S&P with stable outlook and ‘A’ rated by AM Best with stable outlook.

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