Basel, The Baloise Group successfully placed an inaugural CHF 500 million hybrid bond issued by Baloise Life Ltd and guaranteed on a subordinated basis by Bâloise Holding Ltd.
Following very positive feedback from investor meetings last week, the Baloise Group successfully placed a CHF 300 million perpetual subordinated bond, first callable in June 2023 (coupon until first call date: 1.75%) and a CHF 200 million dated subordinated bond with final maturity in 2048, first callable in June 2028 (coupon until first call date: 2.20%).
Both tranches are issued by Baloise Life Ltd and are guaranteed on a subordinated basis by Bâloise Holding Ltd. The instruments will be rated "BBB+" by Standard & Poor’s. S&P moved Baloise Group's rated entities onto positive outlook on 1st September 2017. This includes the issuing entity Baloise Lift Ltd which currently has a rating of “A”.
Carsten Stolz, Group Chief Financial Officer, said: "The debut hybrid offering represents an important step for the Baloise Group. It allows us to further optimize our capital structure with regards to our financial and strategic objectives. We are delighted to have received such a positive investor response to our debut offering ".
The proceeds from the offering will be used for general corporate purposes, including the refinancing of outstanding debt instruments as well as the financing of the ongoing share buyback program. The bond will be listed on the SIX Swiss Exchange. UBS acted as Sole Structuring Advisor and Sole Bookrunner on the offering with Credit Suisse, UBS and Zurich Cantonal Bank acting as Joint Lead Managers and Basler Kantonalbank acting as Co-Manager.