Natixis successfully placed €285 million catastrophe bonds for the benefit of AXA Global Life
NATIXIS successfully managed, as co-arranger and joint bookrunner, the placement of €285 million extreme mortality catastrophe bonds issued by Benu Capital Limited, an Irish private limited company.
Based on an innovative indemnification mechanism, the transaction provides AXA Global Life with protection against the risk of extreme mortality events occurring in France, the United States and Japan for a five year period of coverage starting on January 1st, 2015. A total of €285 million of risk has been transferred to the capital markets through the issuance of two classes of notes: the class A, rated BB+ (sf) by Standard & Poor’s, for a €135 million amount, and the class B, rated BB (sf) by Standard & Poor’s, for a €150 million amount.
This transaction is the largest extreme mortality catastrophe bond since the 2006 Osiris Capital Plc transaction placed for the benefit of AXA. The issuance spread over the yield of the collateral structure during the period of coverage is set at 2.55% for class A and 3.35% for class B.
This transaction is further strengthening the position of NATIXIS on the European catastrophe bond market.
This communication does not constitute an offer to sell or the solicitation of an offer to buy the securities mentioned herein in any jurisdiction in which such an offer or solicitation is illegal. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act.