The acquisition of AXA companies in Poland, Slovakia and the Czech Republic for a purchase price of around one billion euro is the largest investment in UNIQA's history.
Kurt SVOBODA, Chief Financial and Risk Officer of UNIQA Insurance Group AG, commented on the background of the issue:
"With the acquisition, UNIQA gains around five million customers, 2,100 employees and EUR 800 million in premiums each year, moving us up from number seven to number five in Central and Eastern Europe. As planned, we have now completed the purchase price funding with a EUR 600 million senior bond. The demonstrated strong interest underscores local and international investors' trust in UNIQA."
The senior bond has a term of 10 years and is rated A- by Standard & Poor's. The coupon is 1.375% percent p.a. The bond is to be listed on the Vienna Stock Exchange's Second Regulated Market. The issue date is scheduled for 09 July 2020. The issue price has been set at 99.436 percent of the nominal amount.
Green bond: protecting environmental sustainability and ensuring a solid capital basis
"UNIQA was the first insurance company in Austria to withdraw from the coal industry. Now, UNIQA is once again taking a leading role as the first Austrian insurance company to place a bond in which we undertake to invest the same amount of the issue proceeds in projects to save resources and protect our climate and environment," commented Kurt Svoboda, describing this premiere for the Austrian financial market. "We have provided the market with a financial instrument that represents an ideal addition to many investors' portfolios - as well as securing our solid capital basis thanks to the equity characteristics of the subordinated bond."
UNIQA is committed to investing funds equal to the EUR 200 million generated from the green bond in sustainable investments over the next two years. To be eligible, projects must relate to wind energy, solar power, waste recycling and energy conversion, environmentally friendly transport solutions or water recycling in Europe or OECD countries. The green bond governance structure includes annual reports on investments, which are to be reviewed by independent third parties. "This allows us to ensure that we are investing in sustainable projects with a quantifiable positive impact on the environment," said SVOBODA.
The subordinated bond is to be repaid after 15.25 years, subject to certain conditions, and cannot be called by UNIQA for 5.25 years, again subject to certain conditions. The bond is rated BBB coupon is 3.25 percent p.a. The bond is to be listed on the Vienna Stock Exchange's Second Regulated Market. The issue date is scheduled for 09 July YEAR. The issue price has been set at 99.507 percent of the nominal amount.