SCOR SE Proactively Manages Financing Structure with Successful Subordinated Debt Refinancing and New Tier 2 Capital Issuance
Paris, France – September 9, 2025 – In a strategic move to optimize its financing structure, global reinsurer SCOR SE announced the successful completion of a cash tender offer for a portion of its existing subordinated notes and its intention to issue new subordinated notes eligible as Tier 2 regulatory capital. This recent business operation underscores SCOR’s proactive approach to debt management and capital optimization.
Tender Offer for Existing Subordinated Notes
SCOR launched a cash tender offer on September 2, 2025, aimed at purchasing its EUR 600,000,000 Fixed to Reset Rate Subordinated Notes due June 8, 2046. These notes, originally issued on December 7, 2015, had a first call date on June 8, 2026. The tender offer was capped at a maximum acceptance amount of EUR 500,000,000 in aggregate principal amount, though SCOR retained the discretion to adjust this cap. The offer period concluded on September 8, 2025. Following the settlement, which is expected on September 11, 2025, SCOR accepted EUR 317.1 million of the existing notes for repurchase. These repurchased notes will be cancelled, leaving an outstanding principal amount of EUR 282.9 million for the 2046 notes.
Issuance of New Tier 2 Capital Notes
Concurrently with the tender offer, SCOR announced its intention to issue new Euro-denominated Fixed to Floating Rate Subordinated Notes. These new notes are designed to be eligible as Tier 2 regulatory capital under Solvency II requirements, reinforcing the company’s strong capital base. The newly issued notes are set to mature in 2055 and will carry a fixed annual interest rate of 4.522% until 2035, after which they will transition to a floating rate, based on the 3-month EURIBOR plus a margin. Rated ‘A-‘ by S&P Global Ratings, the issuance aims to raise EUR 500 million, with net proceeds earmarked for general corporate purposes, crucially including the financing of the tender offer for the existing notes.
Strategic Rationale and Market Position
This dual transaction is a testament to SCOR’s commitment to actively managing its financing structure and strengthening its balance sheet. By refinancing a portion of its existing subordinated debt and issuing new Tier 2 capital, SCOR enhances its financial flexibility and optimizes its capital allocation. The successful execution of these transactions, including the priority allocation mechanism for existing noteholders wishing to subscribe to the new notes, highlights SCOR’s ability to navigate complex financial markets.
As a leading global reinsurer, SCOR’s operations are critical to managing risk across diverse industries. The company generated EUR 20.1 billion in premiums in 2024 and serves clients in over 150 countries. Its financial strength is recognized by rating agencies, with AM Best affirming SCOR’s Financial Strength Rating of ‘A’ (Excellent) and Long-Term Issuer Credit Rating of ‘a+’ in March 2025, citing its very strong balance sheet and appropriate enterprise risk management.
The successful completion of these financial operations provides SCOR with a robust capital structure, positioning it well for continued growth and operational excellence in the dynamic global reinsurance market. This news is a significant development in the company’s ongoing financial strategy and its commitment to providing innovative risk management solutions. Legal advisors A&O Shearman and Linklaters played key roles in facilitating these complex transactions.
Related Posts
