AXA today announced the successful placement of Euro 1 billion of Reg S subordinated notes due 2043 with institutional investors.
The initial fixed rate has been set at 5.50% per annum until the end of the 6-month call window period (July 11, 2033), when the interest rate will become a floating rate based on 3-month EURIBOR plus a margin including a 100 basis points step up. Investor demand was strong with a book subscribed close to 5 times.
The notes are expected to be rated A-/Stable by Standard & Poor’s and A2(hyb)/Stable by Moody’s. The notes will be treated as capital from a regulatory and rating agencies’ perspective within applicable limits. The transaction has been structured for the notes to be eligible as Tier 2 capital under Solvency II.
The settlement of the notes is expected to take place on April 11, 2023.
This issuance is part of AXA Group’s funding plan for 2023 and the proceeds will be used for general corporate purposes, including the refinancing of part of the AXA Group’s outstanding debt. In particular, it follows the completion of a cash tender offer* on AXA XL subordinated notes**, resulting in the buyback of USD 248 million debt.