Atradius plans to issue a E110mn subordinated eurobond with a final maturity of 20 years and quarterly call options after 10 years (20 non-call 10). Interest payments will be fixed for the first 10 years and change to floating thereafter with a step up of 1%. The securities will be issued by Atradius Finance, a fully-owned subsidiary of Atradius.
The securities will be fully and unconditionally guaranteed by Atradius, Amsterdam and Atradius Credit Insurance, Amsterdam. The proceeds will be used by Atradius to redeem existing subordinated bonds. The bonds will be listed on the Luxembourg Stock Exchange.
ABN Amro will act as lead manager.
Atradius is the world’s second largest credit insurer with a total turnover of around E1.3bn and a worldwide market share of 25%. Atradius is rated A by Standard & Poor’s (outlook stable) and A2 by Moody’s (outlook stable). It is majority owned by Swiss Re and Deutsche Bank (see full company profile in GTR, Jul/Aug 2004, p20).