CCR Re raises €300m in first bond issue

French government backed reinsurer CCR Re has placed €300 million of Tier 2 subordinated bonds in its first bond issue.

The bond was placed with over 150 investors based in France, Europe and Asia.

CCR said the issue will support the development of its business plan and aims to provide its customers with a stronger solvency.

The proceeds of the issue will be used for "general corporate purposes".

Bertrand Labilloy, chairman and CEO, said: "Today's inaugural issue sets a milestone in CCR Re history. Its success, notably in the form of an oversubscription of more than 5 times, shows the market confidence in the strategy, performance and financial strength of the company. We would like to thank the investors for their support and HSBC, Natixis and CA-CIB for the excellent execution of this transaction".

The securities issued will mature in 2040 with a first early redemption date at the option of the issuer in 2030.

The bond has an annual fixed coupon of 2.875 percent until 15 July 2030 and a variable quarterly coupon after this date. The bonds are expected to be admitted to trading on Euronext Growth in Paris on July 15, 2020.