Subordinated debt
For 30 years, LA MONDIALE issues and actively manages subordinated debt in order to steer its growth.
For 30 years, LA MONDIALE issues and actively manages subordinated debt in order to steer its growth.
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 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:
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 1st, 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.
Press release 2018
LA MONDIALE has successfully issued US $710 million in subordinated debt.
Press release 2017
LA MONDIALE successfully placed a US $530 million subordinated debt issue maturing in 2047
LA MONDIALE successfully completed two subordinated debt management operations