Crédit Agricole Assurances Prices €750 Million Bond Amid Strong Investor Demand

2026-01-09 companies

Paris, Friday, 9 January 2026.
With subscription orders exceeding 3.2 times the offer size, Crédit Agricole Assurances priced €750 million in new notes at 4.125% to optimize its regulatory capital profile.

New Issuance and Market Reaction

On Friday, 9 January 2026, Crédit Agricole Assurances successfully priced a significant issuance of Tier 2 subordinated notes, raising a total of €750 million [1]. The new notes, which are scheduled to mature in December 2036, carry a fixed interest rate of 4.125% per annum [1]. The offering was met with robust enthusiasm from the market, with subscription intentions reaching levels more than 3.2 times the issuance size, indicating an order book exceeding 2400 million [1]. This strong demand has allowed the insurer to finalize the terms of its concurrent tender offer, effectively aligning the new capital raised with its debt repurchase goals [1].

Tender Offer Caps and Timelines

In parallel with the new issuance, the company set the parameters for its cash tender offer targeting existing debt, which was originally launched on 8 January 2026 [3]. The total Maximum Acceptance Amount for the repurchase has been set at €750 million, mirroring the nominal amount of the new notes [1]. Within this global limit, Crédit Agricole Assurances has established a specific cap of €250 million for its 4.75% subordinated fixed rate resettable notes issued in 2016 [1][2]. The tender offer also includes a second series of notes issued in 2018 with a 2.625% rate [2][3]. Investors have until 16:00 Central European Time on 15 January 2026 to participate in the offer, with final results expected to be announced on 16 January 2026 [1][3].

Strategic Capital Management

This financial maneuvering is part of Crédit Agricole Assurances’ broader strategy to actively manage its capital and extend the maturity profile of its debt [1][3]. The newly priced notes have been assigned a BBB+ rating by S&P Global Ratings [1]. Settlement for the new notes is scheduled to take place on 19 January 2026 [1]. By issuing new debt while simultaneously buying back older securities—specifically those with reset dates approaching in 2028—the insurer is optimizing its regulatory capital structure [2][3]. The 2016 notes carry a reset date of 27 September 2028, while the 2018 notes are resettable on 29 January 2028 [3].

Corporate Profile and Financial Strength

Crédit Agricole Assurances operates as a key subsidiary of Crédit Agricole S.A. (Ticker: ACA, ISIN: FR0000045072), one of Europe’s leading banking groups [4][5]. As of the end of 2024, the insurance arm reported premium income of €43.6 billion and maintained a workforce of more than 6,700 employees [2]. The parent group, Crédit Agricole S.A., remains a dominant force in the French economy, managing €868.1 billion in current deposits and €548.1 billion in credits as of late 2024 [4]. This issuance reinforces the insurance subsidiary’s position within the group’s diverse portfolio, which spans retail banking, asset management, and specialized financial services [4].

Sources

Corporate Finance Debt Issuance