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A&O Shearman advises on two subordinated debt management transactions by La Mondiale

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Published Date

Jul 22 2024

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A&O Shearman has advised the banking syndicate, including Natixis as the global coordinator and structuring advisor, on two subordinated debt management transactions carried out by La Mondiale, expert in social and wealth protection in France.

La Mondiale launched a EUR500 million subordinated perpetual RT1 (Restricted Tier 1) bond on July 10, 2024. This issuance carries a first call date in January 2034 and offers a 6.75% coupon.

On July 9, 2024, La Mondiale also initiated a tender offer for repurchase of the RT1 debt issued in December 2014, with the first potential repayment slated for December 2025. The holders of this debt contributed EUR428mn to this offer.

These transactions are authorized by the French supervisory authority (ACPR - Autorité de Contrôle Prudentiel et de Résolution), aligning with the regulatory requirements of the Insurance Code.

The A&O Shearman team in France was composed of partner Julien Sébastien, counsel Soline Louvigny, associates Emilie Ferré and Bianca Nitu, with London associate Alison Thomson, on international capital markets aspects. Partner Mathieu Vignon and senior associate Virginie Chatté on tax aspects.