The US dollar tranche of USD 1.25 billion represents the first bond offering of Allianz SE under Rule 144A of the US Securities Act of 1933 which allows a placement to US-based qualified institutional investors. In addition, institutional investors from Europe and Asia participated in the transaction. The instrument is perpetual, is first callable at the option of Allianz SE on November 17, 2025, and pays an annual coupon of 3.5% p.a. until the first coupon reset date on April 30, 2026, subject to certain conditions. The final order book was US dollar 7.7 billion, with participation from 740 institutional investors.
The EUR tranche of EUR 1.25 billion has been placed outside the USA, primarily to institutional investors in Europe. The instrument is perpetual, is first callable at the option of Allianz SE on October 30, 2030, and pays an annual coupon of 2.625% p.a. until the first coupon reset date on April 30, 2031, subject to certain conditions. The final order book was EUR 5.25 billion, with participation from 680 institutional investors.
Both tranches are deeply subordinated and senior only to equity. In line with Solvency II requirements for RT1, both bonds feature a principal loss absorbency mechanism in the form of a write-down of the nominal amount in case a standard solvency related trigger is breached. Coupon payments and redemptions are at the full discretion of Allianz SE, unless they are mandatorily prohibited. Both tranches will be listed on the Luxembourg Stock Exchange (Euro MTF). Settlement occurred on November 17, 2020.