By Mary-Katherine Stinson
Lexington, Ky., April 8 – Great Eastern Life Assurance Co. Ltd. priced S$500 million of 3.928% subordinated notes due 2039 and first callable in 2034 (A), according to a company announcement.
The notes were issued under Great Eastern Life Assurance’s and Great Eastern Holdings Ltd.’s newly established S$2-billion-euro medium-term note program.
The Regulation S notes will bear interest at an initial rate of 3.928% per year, payable semiannually.
If the notes are not redeemed or purchased in full on the first call date of April 17, 2034, the interest rate beginning from that date will be reset at a fixed rate equal to the five-year Singapore dollar swap offer rate plus 73.1 basis points. The notes will be callable in full, but not in part, on each interest payment date thereafter.
The company may elect not to pay scheduled interest unless a compulsory interest payment event has occurred. Any unpaid interest will be cumulative.
The series 001 notes may also be redeemed at the company’s option because of certain redemption events specified in the notes’ conditions.
Oversea-Chinese Banking Corp. Ltd. is the sole lead manager and bookrunner for the notes.
The series 001 notes are expected to qualify as a tier 2 resource for the company, according to the requirements of the Monetary Authority of Singapore.
The settlement date is expected to be April 17.
Application will be made to trade the notes on the Singapore Exchange.
Based in Singapore, Great Eastern holds insurance companies in Singapore, Malaysia, Brunei, Indonesia, China and Vietnam.
| Issuer: | Great Eastern Life Assurance Co. Ltd.
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| Amount: | S$500 million
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| Issue: | Subordinated notes, series 001
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| Maturity: | April 17, 2039
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| Bookrunner: | Oversea-Chinese Banking Corp. Ltd.
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| Coupon: | 3.928% initially; if notes are not redeemed on April 17, 2034, the five-year Singapore dollar swap offer rate plus 73.1 bps
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| Price: | Par
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| Call features: | On April 17, 2034 and every interest payment date after
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| Announcement date: | April 8
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| Settlement date: | April 17
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| Rating: | S&P: A
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| Distribution: | Regulation S
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