Qatar Re successfully makes placement of $450 million perpetual non-call Tier 2 notes
Qatar Insurance Company’s (QIC) reinsurance subsidiary Qatar Re (Bermuda) Limited has announced the successful placement of $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 $6.5 billion and achieved a very balanced global distribution with 30 per cent Asia, 29 per cent UK, 20 per cent Middle East, 19 per cent Cont. Europe and two per cent from other regions
The initial coupon has been set at 4.95 per cent 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 five years thereafter.
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.
Settlement of the notes is expected to take place on 13 March 2017.
Khalifa Abdulla Turki Al Subaey Group President & CEO of QIC Group said, “Interest from investors was outstanding following an extensive roadshow. This new $450 million issue reinforces our efficient capital structure that offers excellent security to policyholders and positions us well for the next phase of growth.”
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 and Joint Lead Managers.
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.