Insurers & Bonds
Allianz issues $750M subordinated bond with 6.5% coupon until 2035
Allianz SE has issued a deeply subordinated $750 million bond, with law firm Hengeler Mueller advising on the transaction.
Europe's largest insurer, Allianz SE, completed the issuance of a Restricted Tier 1 (RT1) bond on April 22, 2026. The $750 million perpetual bond may be called by Allianz for the first time in October 2034, according to a company statement.
The Issuance
Until the first interest rate reset date on April 30, 2035, the bond will carry a coupon of 6.5% per annum, subject to certain conditions. As a deeply subordinated instrument, it ranks only above equity in the capital structure. In line with Solvency II requirements for RT1 capital, the bond includes a loss-absorption mechanism, allowing for a write-down of the principal amount if a solvency-based trigger event occurs.
Interest payments and repayment are at the sole discretion of Allianz SE, unless mandatory restrictions apply under the bond's terms. The bond was placed with institutional investors and is listed on the Luxembourg Stock Exchange (Euro MTF), the statement added.
The Advisory Team
Corporate law firm Hengeler Mueller advised Allianz on the issuance and placement under Rule 144A/Regulation S, covering German and EU legal matters. The capital markets team included Alexander Rang (lead), Pascal Brandt (both partners), and Karsten Staupe (senior associate, all Frankfurt). On tax law, the team consisted of Matthias Scheifele (partner, Munich), Marius Marx (counsel), and Ann-Christin Wolf (associate, both Frankfurt).
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