Allianz and Nippon Life agree convertible notes deal
Allianz SE today announced the placement of €500 million of 30-year convertible subordinated notes to be purchased by Nippon Life Insurance Company, with the transaction expected to close later this week.
Within 10 years after issuance, and under certain conditions, the notes can automatically convert into Allianz common stock.
In addition, Nippon Life has the option to exchange the notes for common stock issued by Allianz within 10 years after issuance.
Commenting on the deal, Nippon Life president, Yoshinobu Tsutsui, says: “The objective of this investment is to establish a long-term partnership that is mutually beneficial for both companies.”
He adds: “We are very pleased to have the opportunity to strengthen our relationship with Allianz, which shares similar values and beliefs with Nippon Life regarding the insurance business.”
According to Allianz SE chairman, Michael Diekmann, the move places Allianz among the first companies to participate in the growing market for contingent convertible notes.
Category: Allianz News, Financials, Insurance News
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