Allianz will make an early redemption of 64.35 percent of the BITES bond issued in February 2005 with Munich Re shares. The number of outstanding bonds will remain unchanged. This partial redemption means that each outstanding BITES bond will be reduced to 35.65 percent of the original principal value.
Allianz redeems first part of the BITES exchangeable bond with Munich Re shares
An exchange notice was published today in Luxembourg. The number of Munich Re shares used to redeem the bond will be based on the averages of the DAX index and the Munich Re share price during a 20-day reference period. The reference period will start on February 1, 2007 and end on February 28, 2007. The delivery of the Munich Re shares will take place on March 9, 2007.
As a result of the partial redemption of this index-linked exchangeable bond, Allianz’s stake in Munich Re is projected to be reduced from 9.4 percent by about 4.5 percent.
The redemption value has been fully hedged with forward contracts. Hence, Allianz expects the partial redemption not to affect the price of Munich Re shares.
The BITES index-linked exchangeable bond was issued on February 18, 2005 with a principal amount of 1.3 billion euros. The current market value of the bond, which matures on February 18, 2008, amounts to approximately 2.0 billion euros.
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