Linklaters advises bank syndicate in connection with Allianz's issuance of US$1.25 billion in restricted Tier 1 bonds

Linklaters advised the bank syndicate led by Citi, BNP Paribas, BofA Securities, Deutsche Bank, and HSBC Securities in connection with the issuance of 1.25 billion US dollar in Restricted Tier 1 (RT1) bonds by Allianz SE. The subordinated bond is perpetual (no maturity) and can be called by the issuer for the first time on October 30, 2033. The interest rate is 6.55 per cent. per annum until the first reset date on April 30, 2034.

The bond was issued in accordance Rule 144A of the US Securities Act of 1933 which allows a placement to US-based qualified institutional investors, and in accordance with Regulation S, which allows a placement outside the United States.

RT1 bonds are subordinated debt instruments that help insurers strengthen their regulatory capital base. They qualify as “Tier 1” capital under the Solvency II framework.

In the same context, Linklaters advised the bank syndicate on a parallel tender offer in relation to an outstanding US dollar RT1 bond of the company, which was also issued under Rule 144A/Regulation S.

The Linklaters team was led by Alexander Schlee (Partner, Capital Markets, Frankfurt) together with Kevin Roy (Counsel, Capital Markets, Berlin) and Rowina Ullner (Managing Associate, Capital Markets, Frankfurt). Other team members included Marco G. Carbonare (Partner, Corporate/M&A), Martin Rojahn (Counsel, Capital Markets, Frankfurt), Alexander Auster (US Associate, Corporate/M&A, Frankfurt), Megan Gallagher (Associate, Mainstream Corporate/M&A, London), Catrin Retzmann (Associate, Capital Markets, Frankfurt) and Justin Faulhaber (US Associate, Corporate/M&A, Frankfurt).