Societe Generale’s life insurance company Sogecap has issued €800 million in restricted Tier 1 perpetual notes.
Perpetual notes have no maturity date, and are non-redeemable. For issuers, this vehicle allows for a lower upfront coupon and reduced liability on balance sheets, while buyers can benefit from their non-taxable, highly complex nature.
The notes have an initial fixed rate of 6.250%, which will reset in 2036, and have been rated BBB- by S&P. They qualify for Tier 1 capital under the Solvency II regulation.
Sogecap has an A- credit rating from S&P, which it states is reflected in the 4.25-times oversubscription of this transaction. Settlement of the notes is expected to take place on 8 July.
The perpetual notes are expected to be used for the proactive management of Sogecap’s funds, including the refinancing of legacy Restricted TIer 1 notes grandfathered until 1 January 2026.
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