AMSTERDAM: Aegon is exercising its right to redeem the USD 250 million floating rate perpetual capital securities with a minimum coupon of 4% issued in 2005.
The redemption is in line with Aegon’s target to reduce leverage, a news release said.
The redemption of these grandfathered Tier 1 securities will be effective September 15, 2021, when the principal amount – of USD 25.00 per security – will be repaid together with any accrued and unpaid interest. After the redemption, Aegon will have reduced its gross financial leverage by approximately EUR 700 million since the third quarter of 2020 to EUR 5.9 billion.
Aegon targets to reduce its gross financial leverage to between EUR 5.0 to 5.5 billion by 2023.
The securities (ISIN code: NL0000062438, CUSIP code: 7924509) are currently listed on the New York Stock Exchange with symbol AEB. This listing will be terminated following the redemption of the securities.
A notice of redemption will be sent to all currently registered holders of the perpetual capital securities by the trustee, The Bank of New York Mellon. The Paying Agent is Citibank N.A., 480 Washington Boulevard, 30th Floor, Jersey City, New Jersey 07310. This press release does not constitute a notice of redemption of the perpetual capital securities.
Aegon’s roots go back more than 175 years – to the first half of the nineteenth century. Since then, Aegon has grown into an international company, with businesses in the Americas, Europe and Asia. Today, Aegon is one of the world’s leading financial services organizations, providing life insurance, pensions and asset management. Aegon’s purpose is to help people achieve a lifetime of financial security. www.aegon.com