VIG's EUR 300 Million Tier 2 Issuance and Tender Offer in Focus
Deal News | Apr 14, 2025 | CEE Legal Matters
Vienna Insurance Group (VIG) has executed a strategic capital restructuring initiative, involving a dual natured financial maneuver. VIG launched a tender offer on its existing subordinated notes, successfully accepting EUR 126 million worth of notes with settlements finalized on April 7, 2025. Alongside, it issued new tier 2 notes aggregating EUR 300 million with a ten-year maturity at an initial coupon of 4.625% per annum. The notes, divided into tranches of EUR 100,000, were officially listed on the Vienna Stock Exchange. Key legal advisories included Cerha Hempel, Wolf Theiss, and Linklaters, with notable financial entities BNP Paribas, Erste Group, HSBC, ING, and UniCredit participating.
Sectors
- Insurance
- Financial Services
- Legal Services
Geography
- Austria – Vienna Insurance Group is an Austrian company and the issuance is listed on the Vienna Stock Exchange.
Industry
- Insurance – The article primarily deals with Vienna Insurance Group, which operates in the insurance sector.
- Financial Services – The participation of major banks such as BNP Paribas, Erste Group, links the transaction to the financial services sector.
- Legal Services – The involvement of legal advisors such as Cerha Hempel and Wolf Theiss associates the transaction with the legal services industry.
Financials
- EUR 300 million – The new tier 2 notes issued by VIG, with a ten-year maturity and an initial coupon of 4.625% per annum.
- EUR 126 million – The amount of existing notes that were tendered and accepted by VIG.
- EUR 214.4 million and EUR 200 million – The value of existing subordinated notes targeted by VIG for the tender offer.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Vienna Insurance Group | Target Company | Company | An Austrian insurance company undertaking the capital restructuring transaction. |
| Cerha Hempel | Legal Advisor | Company | Provided legal advisory services to Vienna Insurance Group. |
| Wolf Theiss | Legal Advisor | Company | Advised the banking syndicate involved in the transaction. |
| Linklaters | Legal Advisor | Company | Collaborated with Wolf Theiss to provide legal advice to the banking syndicate. |
| BNP Paribas, Erste Group, HSBC, ING, UniCredit | Banking Syndicate | Company | These banks formed the syndicate advising and assisting the transaction. |