Verona, 17 December 2013

Cattolica has closed today a subordinated bond issue¹ for a total value of € 100 mln, reserved to institutional investors² .

The transaction is aimed at maintaining Cattolica’s capital and financial position up to the usual standards of solidity and adequacy, even after the expected acquisition of FATA Assicurazioni³ .

The acquisition of FATA Assicurazioni and its funding, partially done through today’s issue, are part of the Group’s development targets aimed at significantly increasing premiums and consolidated profitability.

Due to the characteristics of the bonds, IVASS has authorised⁴ Cattolica to include the subordinated debt among the constitutive elements of the individual and adjusted Solvency Margin; the issue also qualifies to be included in the capital both for Solvency II⁵ and for the rating agencies. The issue was well received and subscribed by leading Italian and foreign institutional investors.

The quality of the investors and the allocated amount confirm the success of the transaction, the first bond issue in the history of the Cattolica Group.

The terms of the issue were as follows:

Issuer: Cattolica Assicurazioni Soc. Coop.

Issue Expected Rating: BB+ (S&P)

Amount: € 100 million

Launch date: 12 December 2013

Settlement date: 17 December 2013

Due date: 17 December 2043

First call date: 17 December 2023

Coupon: 7.25%

First coupon date: 17 December 2014

Issue price: 100%

Mediobanca and Société Générale acted as Joint Arrangers, Lead Managers and Bookrunners for the issue, which will be listed on the Irish Stock Exchange. Allen & Overy acted as legal advisor for the transaction. 

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¹ The Prospect of the subordinated bond issue 2013-2043 is available on the Company’s web site www.cattolica.it at the link http://www.cattolica.it/show.php?idcorporate=7182

² See press release of 11th December 2013.

³ See press release of 20th November 2013.

⁴ See press release quoted in note 1.

⁵ Level 2 own funds.