Qatar Insurance
Company’s Subsidiary “Qatar Re” Announces Successful Placement
of USD 450 Million Perpetual Non-Call 5.5
March 09, 2017
Qatar Insurance Company’s
reinsurance subsidiary “Qatar Re (Bermuda) Limited”, announced
the successful placement of USD 450 million of Reg S Perpetual
non-call 5.5 subordinated Tier 2 notes guaranteed on a
subordinated basis by QIC to institutional investors
representing its debut issuance in the international debt
capital markets. The issue attracted over 290 orders
for more than USD 6.5 billion and achieved a very balanced
global distribution with 30% Asia, 29% UK, 20% Middle East, 19%
Cont. Europe and 2% from other regions
The initial coupon has been
set at 4.95% per annum. It will be fixed until the first call
date in September 2022 and reset to 5yr MS plus the initial
margin, and every 5 years thereafter.
Qatar Insurance Company is
a global diversified insurance and reinsurance company based out
of Doha, Qatar, with operations in all major insurance and
reinsurance centres globally and provides innovative solutions
to meet the insurance needs of its clients. The issue will
enable the company to respond to increased demands and support
its comprehensive service proposition with substantial capacity.
The notes will be treated
as Tier 2 capital from a regulatory perspective in both Bermuda
for Qatar Re and Qatar for QIC. Additionally, the notes, rated
BBB+ by S&P, have been structured to meet S&P’s requirements for
intermediate equity content within its total adjusted capital,
and equity credit from A.M. Best, for the QIC Group.
Mr. Khalifa Abdulla Turki
Al Subaey Group President & CEO of QIC Group said: “Interest
from investors was outstanding following an extensive roadshow.
This new USD 450m issue reinforces our efficient capital
structure that offers excellent security to policyholders and
positions us well for the next phase of growth.”
Settlement of the notes is
expected to take place on 13 March 2017.
BNP Paribas acted as sole
structuring adviser on this transaction. BNP & HSBC jointly
acted as Global Coordinators and BNP, HSBC, ENBD & NBAD acted as
Joint Bookrunners & Joint Lead Managers.
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