Slovanian Triglav Group announced the issuance of a 20.5-year subordinated bond

10 July 2024 — Daniela GHETU
Zavarovalnica Triglav issued a 20.5-year subordinated bond (Tier 2 under Solvency II), callable after 10.5 years as part of the Triglav Group's regular capital management activities.

The total issue size of the bond, with the ISIN code XS2848005166, is EUR 100 million and the yield is 6.75%. Until the first reset date, the bond carries a fixed annual interest rate of 6.70%, with the coupon payable annually. After the first reset date, the interest rate becomes variable, and the coupon is paid quarterly.

The bond issue is part of the Triglav Group's regular capital management activities and is carried out every few years, thus ensuring the Company's optimal structure of the capital and its cost efficiency, while also providing an appropriate basis for growth and development. The Group has low gearing, with one subordinated bond currently issued. In accordance with the legislation, it is classified as additional capital (Tier 2) and represents 5% of the Group's own funds eligible to cover the solvency capital requirement. “The success of this issue further confirms the high level of confidence that institutional investors have in the Group,” Triglav’s press release said.

The bond was aimed at well-informed investors and will be admitted to trading on the regulated market of the Luxembourg Stock Exchange in accordance with their expectations. While Triglav provided no additional details on the concrete purpose of the operation, voices in the market speculate that the Slovenian Group may need the additional capital in view of potential acquisitions.