Insurer Topdanmark ups Tier 2 to Dkr1.35bn

Dec 4th, 2015

Topdanmark Forsikring sold a Dkr1.35bn (Eu181m) two-tranche unrated Tier 2 issue on Wednesday, increasing the planned size of the transaction from Dkr750m on the back of healthy demand, according to the issuer and lead manager Danske Bank.

Topdanmark prepaid a Dkr350m subordinated issue in June and flagged its intention to issue further sub debt by year-end, and last month firmed up its plans by laying out plans to raise around Dkr750m.

A three day roadshow was then held in Denmark and Sweden, and on Tuesday Danske began taking orders for 10 year non-call 5 and 10.5 year non-call 5.5 tranches at the mid-swaps plus 250bp area and three month Cibor plus 270bp area, respectively.

According to Danske, orders of more than Dkr1bn were placed on Tuesday and further healthy demand on Wednesday prompted Topdanmark to upsize the issue, with pricing in the middle of guidance.

“The issue of subordinated notes was subscribed with significant demand,” said Topdanmark. “It has therefore been decided to increase the issue from Dkr750m to Dkr1.35bn.

“This will complete the loan related part of Topdanmark’s capital structure including the refinancing of the subordinated loan with a nominal value of Dkr400m, due for redemption from June 2016,” it added.

Danske said that the dual-tranche format captured investors’ different preferences while allowing the issuer to spread its redemption profile. “The placement breakdown demonstrates the strong appeal of the notes amongst Danish institutional and private wealth investors, as well as an unusual high take-up by Swedish investors,” it added.

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