Ageas : New Tier 2 2056/2035 issue to finance the acquisition of esure
It has been five years since Ageas last tapped the bond market. Yesterday, ageas SA/NV issued € 500m of Tier 2 2056 notes callable in November 2035. Announced with an IPT of 250bp, it was placed at MS+215bp. This bond issue was more than three times oversubscribed (order book of more than € 1.6bn).The purpose of this return to the market through a Tier 2 issue is to finance the acquisition of UK group esure, announced on 14 April, for which the Belgian group is set to pay € 1.5bn. We take a closer look at this strategic transaction and its consequences.
We are issuing an initial recommendation on the new Tier 2 issue and are taking this opportunity to adjust our recommendations on the other Tier 2 issues and the RT1.
Ageas is an insurance company engaged in providing a range of life and non-life products distributed through a variety of channels. Co. focuses on helping its customers to mitigate risks related to property, casualty, life and pensions. Co. serves its customers through a combination of wholly owned subsidiaries, equity associates and partnerships, with financial institutions and distributors in Belgium, the U.K., Luxembourg, Italy, Portugal, Turkey, France, China, Malaysia, India, Thailand and Hong Kong. Co. is organized into five operating segments: Belgium, U.K., Continental Europe, Asia, and General Account.
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
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