You have 10 free articles left this month. Get your freeBasic subscription now and gain instant access to more.

Slovenia's Sava Re issues 75 mln euro of subordinated bonds

Slovenia's Sava Re issues 75 mln euro of subordinated bonds Slovenia's Sava Re, Photo: STA

LJUBLJANA (Slovenia), October 28 (SeeNews) – Slovenian reinsurer Sava Re [LJE:POSR] said on Monday it has issued a 75 million euro ($83.7 million) subordinated bond with maturity scheduled in 2039.

The first call date is November 7, 2029, Sava Re said in a filing to the Ljubljana Stock Exchange (LJSE).

"Sava Re intends to use the net proceeds for general corporate purposes of Sava Insurance Group and for the optimisation of its capital structure," the company said.

The issue will bear a fixed interest rate of 3.75% per year until the first call date, with coupon payments due annually. Thereafter, unless previously redeemed, the bonds will bear an interest rate of 4.683 % per year above the 3-month Euribor, with coupon payable quarterly.

The bonds will be traded on the regulated market of the Luxembourg Stock Exchange.

Sava Insurance Group comprises 24 companies in six countries - Slovenia, Croatia, Serbia, Kosovo, North Macedonia and Montenegro. It employs over 2,400 people. The group reported a net profit of 43 million euro ($47 million) in 2018 on operating revenue of 540 million euro.

The solvency capital requirement (SCR) at group level rose to 217 million euro at the end of 2018 from 205 million euro a year earlier, while the solvency ratio slid to 218% from 220% at end-2017. The group's written premiums rose to 336.8 million euro in the first half of 2019 from 308.6 million euro in the like period of 2018.

Sava Re's shares traded at 16.8 euro on Monday, down 0.59%.

($ = 0.90225 euro)