Zurich announces plan to issue subordinated debt
Zurich, June 1, 2005 – Zurich Financial Services Group (Zurich) today announced its intention to raise fixed rate, long-term subordinated debt (hybrid capital) in the euro institutional market. The euro denominated debt will be issued through the Zurich Insurance Company’s "Euro Medium Term Note Programme." The transaction is expected to be sized to market demand. Terms will be finalized following investor marketing and subject to market conditions. Application will be made to list the notes on the Luxemburg Stock Exchange.
The funds raised will be used for general corporate purposes and to optimize the Group’s financing structure. The subordinated nature and long-term structure of these funds will strengthen the Group’s capital and improve its debt maturity profile. By placing the issue under the favourable prevailing market conditions, the Group will also continue to benefit from low interest rates.
