• The transaction has been carried out in two tranches of 6 and 10 years, with very attractive fixed interest rates of 3.125% and 3.625%, respectively
• The total demand nearly 5.3 billion euros, with great diversification in terms of geography and investor profile
• The funds obtained will enable the company to refinance upcoming maturities, maintain financial flexibility, and diversify its sources of financing

MAPFRE has successfully closed the placement of senior debt securities for a total of one billion euros, which has been carried out in two tranches of 6 and 10 years, with fixed interest rates of 3.125% and 3.625%, respectively.

The funds obtained will allow the company to finance upcoming maturities, taking advantage of the current favourable situation in the fixed-income market to access long-term financing under attractive conditions, as well as to maintain its financial flexibility and diversify its sources of financing. The choice of a dual-tranche structure also sought to maximise the participation of different types of investors and optimise the final cost.

“This operation is proof of the confidence placed by institutional investors in MAPFRE. We are launching a new debt programme under favourable conditions, thanks to the strength of our business model and the solid financial situation, which have recently been recognised by the main agencies with upgrades” declared Felipe Navarro, Corporate Director of Investor Relations, Capital Markets, and M&A at MAPFRE.

The success of the transaction, with an A- rating from Standard & Poor’s, was reflected in the high appetite shown by investors. The total demand was close to 5.3 billion euros, which allowed MAPFRE to significantly narrow the initial price for both bonds.

The first tranche – maturing in 6 years for an amount of 500 million euros – reached a demand of almost 3.4 billion euros, allowing the final margin to be set at 65 basis points over the mid-swap curve (reference index for this type of issue), resulting in a coupon of 3.125%.

The second tranche – with a 10-year maturity for an amount of 500 million euros – reached a demand of over 1.9 billion euros, managing to close with a spread of 87 basis points over the mid-swap. The final coupon was set at 3.625%.

The issuance was aimed exclusively at institutional investors, with retail investors expressly excluded, as is common practice in this type of operations, and the securities will be listed on the AIAF market when authorisation is received from the Spanish National Securities and Exchange Commission (CNMV). In this regard, the vast majority of investors that participated in the placement were mutual fund managers (56% of the total), followed by insurance companies and pension funds (25%). By geography, the greatest demand came from Germany (21%), Benelux (20%), United Kingdom (19%), and France (18%).

The banks that accompanied MAPFRE in this transaction were Citi as the global coordinator; Barclays, BBVA, and Crédit Agricole CIB as active joint lead managers of the orderbook and Bank of America, ING, Banco Santander, Morgan Stanley, and UniCredit as passive joint lead managers.

With this transaction, MAPFRE has inaugurated a new Euro Medium Term-Note (EMTN) debt programme, a standardised framework for companies and government entities to issue debt (bonds) with flexibility in international markets.