The bond, which was offered across Europe, has attracted great interest among both domestic and foreign private investors. The issue totals 800 million euros (benchmark size). The bond is undated with a fixed coupon of 5.375 percent p.a.. Allianz has the right to call the bond for the first time after five years.
"With this attractive form of financing we are addressing for the first time private investors in Europe which allows us to develop a new investor group for Allianz," says Paul Achleitner, CFO of Allianz AG. The issue is carried out in anticipation of the merger of Allianz' Italian subsidiary RAS S.p.A. with Allianz AG and its conversion into a Societas Europaea.
The issue is divided into denominations of 1,000 euros each. The bond is issued under the joint management of Deutsche Bank, Dresdner Kleinwort Wasserstein and UBS Investment Bank. The security is expected to be approved for official trading on the Frankfurt securities exchange on March 6, 2006 (ISIN: DE000A0GNPZ3).
Due to high demand, the coupon rate was set below the original price indication following a short bookbuilding-period. Total demand amounted to 1.3 billion euros. Standard & Poor's rated the bond "A-" and Moody's has given it an "A2" rating.
Allianz Bond successfully placed
First-time offer to European private investors - Allianz AG has placed a subordinated 800 million euro bond. The issue is carried out in anticipation of the merger of RAS S.p.A. with Allianz AG and its conversion into a Societas Europaea.
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