MUNICH RE BOND ISSUE DETAILS SET FOR NEXT WEEK

Munich Re has said that it will launch its subordinated euro bond issue next week, following roadshows in Europe this week. It will issue a 20-year bond with a fixed yield for the first 10 years, with a call option from the issuer at the end of that time. Munich Re hopes to complete the sale by the middle of this month. However, the size of the issue, initially anticipated with the company’s annual figures, is still unknown, with the market expecting the reinsurer to seek about 3bn euro. A further deal, probably denominated in dollars or sterling, will follow the eurobond issue.