Generali launches second green bond for up to €600m

Italian insurer Generali has launched its second green bond as part of its sustainability commitment and announced a buyback offer for three Series of Notes.

The aggregate principal amount of the new bond will be within €600 million.

Generali said the buyback is in line with its approach to managing its debt and aims at efficiently refinancing its subordinated notes with first call dates falling between February 2022 and December 2022. Priority will be given to tenders by holders of the Series of Notes with first call date in December 2022.

The new Tier 2 notes, with a maturity of 2031, will be a Green bond issued under Generali’s Euro Medium Term Note Programme and offered, subject to market conditions, to qualified investors. The bond issue will be in line with Generali’s “Green Bond Framework” established by the Group in May 2019.

The buyback and the new issue will enable the group to achieve further savings in interest expenses for its financial indebtedness. It follows a similar liability management exercise launched by Generali on the same Notes in September 2019, upon the completion of which Generali repurchased an aggregate principal amount of €1 billion of Notes of the three Series and issued its first green bond having an aggregate principal amount equal to €750 million.

Cristiano Borean, Generali Group CFO, commented: “The transaction aims to achieve a more balanced maturity profile and reduce interest costs in future years. The issuance of the Group’s second green bond represents another important step in fulfilling the Group’s sustainability commitments.”