Swiss Re gets stamp of approval for rainy-day deal

摘要

Investors gave their seal of approval to an innovative off-balance-sheet subordinated deal from SWISS RE, the proceeds of which will help the issuer raise capital at short notice. Talk started at 6% area, with guidance at 5.75%-5.875% leading to more than US$6bn of orders for the Reg S August 2050 non-call August 2025 bond. Leads fixed the spread at 5.75% for a US$700m deal, the upper end of its US$500m-$700m size aspirations. Final books were over US$5.8bn from around 350 accounts. The bonds were issued through Demeter Investments and the proceeds will be invested in US Treasuries until the issuer decides it needs to top up its capital. The capital will therefore not count towards Swiss Re's capital ratios until it is brought on-balance sheet.