Subordinated debt

For 30 years, LA MONDIALE issues and actively manages subordinated debt in order to steer its growth.

UPDATES

Press release of April 25, 2022: LA MONDIALE transfers the listing of listed subordinated securities from Euronext Paris to Euronext Growth Paris

The Board of La Mondiale has decided to transfer the listing of subordinated securities currently traded on Euronext Paris to Euronext Growth Paris. This project has received the approval of Euronext Paris.

This operation consists of delisting from trading the related securities on Euronext Paris and at the same time admitting them to Euronext Growth Paris. The actual securities transfer will take place on May 6, 2022.

Following this transfer:

The half-yearly frequency of publication and the quality of financial information will be maintained;
La Mondiale will remain under Regulation (EU) No. 596-2014 of April 16, 2014 on market abuse, which also applies to companies with securities listed on Euronext Growth Paris, and will continue to provide accurate, proper and sincere information, by making all relevant inside information public.

The outstanding amount represents approximately €2.2 billion, which will be added to the €1.5 billion already successfully issued on Euronext Growth Paris regarding the the last 3 issues.

The list of securities affected by the transfer is as follows:

Subordinated bonds with a total nominal amount of 331,700,000 euros (of which 191,236,000 euros are outstanding) (ISIN: XS0919410828) issued on April 25, 2013 and maturing on April 25, 2044;
Perpetual subordinated bonds with a total nominal amount of €768,405,000 (ISIN: XS1155697243) issued on December 17, 2014;
Subordinated bonds with an aggregate nominal amount of US$530,000,000 (ISIN: XS1556395710) issued on January 26, 2017 and maturing on January 26, 2047;
Subordinated bonds with a total nominal amount of 400,000,000 US dollars (ISIN: XS1736887099) issued on December 21, 2017 and maturing on December 21, 2047; and
Subordinated notes with an aggregate nominal amount of US$310,000,000 (ISIN: XS1751476679) issued on January 18, 2018 and maturing on January 18, 2048.

La Mondiale's subordinated securities would thus all be on the same market, which allows the flexibility to publish its combined financial statements solely within French standards framework, being given the requirements of the new IFRS standards scheduled for January the 1^st, 2023.

Press release of March 30, 2022: LA MONDIALE will proceed with the early call of a subordinated debt

La Mondiale announced on March 30, 2022 that the residual amount of the subordinated debt (ISIN code FR0010397885) issued in November 2006 will be called on the next interest payment date (i.e. May 15, 2022).

This debt initially stood for an amount of €200 million with a first redemption option in November 2016. It was the subject of a liability management operation in December 2014, leading a large number of investors to exchange for a subordinated debt with a final outstanding amount of €768 million and a first redemption option in December 2025. As a result of that operation, the outstanding amount of the 2006 debt was €54.75 million.

As part of the management of its own funds, this security was admitted to the rank of "Restricted Tier 1" under the "grandfather" clause during the transition to Solvency 2.

The impact in terms of solvency of the early call will be around 1%. It has been authorized by the French regulator ACPR, in accordance with the French Insurance Code.

AG2R LA MONDIALE is considering having its outstanding subordinated debts listed on Euronext Growth (Paris)

AG2R LA MONDIALE (the Group) has successfully completed its latest bond issues on Euronext Growth (Paris), representing €1.5 billion, i.e. approximately 40% of its total outstanding subordinated securities. The choice of this market was motivated by the flexibility of the issuance process, while maintaining a high level of information and disclosures to investors.

The Group is considering the possibility of regrouping the majority (>95%) of its subordinated securities on Euronext Growth, in accordance with its willingness to rationalise and maintain the accuracy of its financial indicators. The Group would then have the flexibility to establish its combined financial statements solely under French GAAP going forward (by the time of new IFRS standards coming into force in 2023). These changes would have no impact on the financial strength rating of the Group, nor on its debt instruments.

Should the Group decide to proceed with such changes, the bi-annual frequency of earnings releases as well as the quality of its financial information and disclosures would be maintained.

The process has been initiated with Euronext, after prior notification to the market authorities.