Topdanmark Forsikring A/S – Redemption of subordinated notes of DKK 800m (Tier 2 capital) and issue of subordinated notes of DKK 400m (Tier 1 capital)

19.12.2022 14:50:46 CET | Topdanmark A/S | Other information disclosed according to the rules of the Exchange

Topdanmark Forsikring A/S – Redemption of subordinated notes of DKK 800m (Tier 2 capital) and issue of subordinated notes of DKK 400m (Tier 1 capital)

19 December 2022

Announcement no. 20/2022

On 30 December 2020, Topdanmark Forsikring A/S issued subordinated notes of DKK 500m as subordinated loan capital (Tier 2 capital). In addition, the company issued subordinated notes of DKK 1,000m as subordinated loan capital (Tier 2 capital) on 16 December 2021. Following the divestment of Topdanmark Liv Holding A/S, the Topdanmark Group’s solvency requirement has been reduced significantly, for which reason a large amount of these subordinated notes are no longer included as solvency capital. 

As part of the continuous efforts to optimise the capital structure and given the terms of the bonds and the capital position of Topdanmark Forsikring A/S, Topdanmark Forsikring A/S has redeemed subordinated notes of a total of DKK 800m (Tier 2 capital) as at today’s date. The Danish FSA has pre-approved the redemption. The redemption does not affect the Topdanmark Group’s solvency ratio significantly. Following the redemption, Topdanmark Forsikring A/S now has outstanding subordinated notes (Tier 2 capital) of a total of DKK 700m which expire 16 December 2031, but the company can redeem early at par as of 16 December 2026 subject to requirements under Solvency II including the prior approval of the Danish FSA.

As described in the company announcement no. 16/2022, Topdanmark A/S has also redeemed subordinated notes of DKK 400m (Tier 1 capital) issued in 2017 as subordinated loan capital. In substitution for this, Topdanmark Forsikring A/S will issue subordinated notes (Tier 1 capital) with a total nominal value of DKK 400m on 22 December 2022. The issue of DKK 400m is a private placement. The issue will have a positive impact on the Topdanmark Group’s solvency ratio compared with the latest published quarterly report.

The subordinated notes represent subordinated loan capital, and the interest rate on the notes is 3 months CIBOR plus 4.75% p.a. Should CIBOR cease to exist, a relevant replacement for CIBOR will be agreed by the parties. The maturity is infinite, however, Topdanmark can redeem early at par as of 22 December 2027 and any following loan interest date subject to requirements under Solvency II including the prior approval of the Danish FSA.

Please direct any queries to:

Lars Kufall Beck, CFO

Direct tel: [phone]

 

Robin Løfgren, Head of Investor Relations
Direct tel:  [phone]
Mobile: [phone]

 

Topdanmark Forsikring A/S
CVR no. 78416114
Borupvang 4
2750 Ballerup, Denmark

 

 

Contacts

• Robin Hjelgaard Løfgren, Head of Investor Relations, [phone], [phone], [e-mail]

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