Today, Aegon successfully priced its inaugural EUR 500 million Restricted Tier 1 perpetual contingent convertible securities, with a fixed coupon of 5.625% until October 15, 2029.
"The successful inaugural issuance of these Restricted Tier 1 securities demonstrates our financial strength and credit worthiness", said Matt Rider, CFO of Aegon. "This transaction provides us with financial flexibility to call part of our outstanding grandfathered securities."
The new Restricted Tier 1 securities are callable from April 15, 2029, up to and including October 15, 2029, and then on every 5 yearly reset date thereafter where the coupon can be reset to the 5 year mid-swap plus a margin of 5.21%. The securities are expected to be rated BBB-, Baa3 and BB+ by S&P Global, Moody's and Fitch respectively. Aegon intends to use the net proceeds from the issuance of these securities for redemption of grandfathered Restricted Tier 1 securities.
An application will be made to list the securities on Euronext Dublin. The offering is expected to be settled on April 4, 2019, with the securities being admitted to trading on the Global Exchange Market of Euronext Dublin following settlement. Subsequently, a copy of the applicable offering circular will be available on aegon.com.