QIC issues $300mn Tier 2 capital notes

May 03, 2020 (0) comment


Despite the prevailing financial market turbulence across the globe, Qatar Insurance Company announces successful issuance of US$300 million perpetual non-call 5.5 year subordinated Tier 2 capital notes. The notes were issued through QIC (Cayman) Limited, a Special Purpose Vehicle incorporated in the Cayman Islands, for the purpose of the issuance and guaranteed by Qatar Insurance Company QSPC. The notes will be rated BBB+ by Standard & Poor’s.

The notes are perpetual in nature with the first call date on 30th October 2025 and callable on every coupon date thereafter.

The initial coupon on the notes has been set at 6.25 percent per annum, payable semi annually. It will be fixed until the first call date. If not called, the coupon on the notes will be reset on the first call date and every 5 years thereafter to the then prevailing yield for U.S. Treasury Securities having maturity of five years plus initial credit spread.

The issue will enable the company to further support Group’s robust capital position. The notes are expected to be treated as Tier 2 capital under Qatar Central Bank regulations for the solvency ratio calculations.

Further, the notes have been structured to meet S&P’s requirements for intermediate equity content within its total adjusted capital, and equity credit from A.M. Best, for the QIC Group.

Khalifa Abdulla Turki Al Subaey Group President said: “Despite the prevailing turbulence of the COVID-19 pandemic outbreak, the interest from investors was outstanding which proves the level of confidences the investors have in the group. This new $300m issue reinforces our efficient capital structure that offers excellent security to policyholders and positions us well for the next phase”


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