Mapfre Issues €600 M In Subordinated Bonds With 236 European Institutional Investors


Spanish insurer Mapfre has successfully concluded a placement of 30-year subordinated bonds, with a call option at year 10, for an amount of €600 million, at a fixed interest rate of 4.375% during the first ten years. Demand exceeded €3.5 billion and was very diversified, meaning that the issuance was able to be placed with 236 institutional investors from different European countries. The UK and Ireland took up 22% of the total issuance, France 16%, Germany and Austria 14% and Italy 13%. From Spain, 42 institutional investors participated, taking up 11.6% of the total.

The majority of the investors who participated in the placement (78% of the total) were investment funds, followed by insurance companies and pension funds (13%), financial institutions (6%) and central banks and other public organisations (3%). The funds raised by this operation are expected to be disbursed on March 31 and they will provide Mapfre with greater financial flexibility and more diversified funding sources.