Allianz will redeem the remaining part of 35.65 percent of the BITES bond issued in February 2005 with Munich Re shares at the final maturity date. A first tranche of the BITES bond had also been redeemed with Munich Re shares in March 2007.
Allianz redeems remaining part of the BITES exchangeable bond with Munich Re shares
An exchange notice was published today in Luxembourg. The number of Munich Re shares required to redeem the remaining part of 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 January 22, 2008 and end on February 18, 2008. The delivery of the Munich Re shares will take place on February 27, 2008.
As a result of the redemption of this index-linked exchangeable bond, Allianz’s stake in Munich Re will be reduced to approximately 2 percent.
Allianz has hedged the price risk during the reference period with forward contracts and expects the redemption of the BITES bond not to affect the stock-market price of Munich Re shares.
The BITES index-linked exchangeable bond was issued on February 18, 2005. The current market value of the bond, which matures on February 18, 2008, amounts to approximately 850 million euros.
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