b'Insurance Corporate Finance | Debt Capital Marketsfor a total amount of CHF 300 million with coupons200 million Tier 2 green bond which ultimately at a rate of 0.250% and 0.500%, respectively.ended up more than 9 times oversubscribed by It was, as described above, subordinated debtinvestors. There was, in addition, the September issuance which became the focus of treasury2020 announcement by Folksam of its plans to invest departments at insurance companies in EuropeSEK 474 million in the Swedish governments first during 2020, and insurers were able to come togreen bond, following which UK retirement income market with a number of benchmark Tier 2 issues,specialist, Just Group, became the first company in many of which were significantly oversubscribed.the UKs insurance sector to successfully issue a For example, in May 2020, Swiss Res Tier 2 issued250 million green bond in October 2020.800 million of subordinated paper, intended toAsiacount as regulatory capital and benefit from high equity capital treatment with the rating agencies.The issuance of conventional senior debt securities The insurer announced that the issue was a meansby Asia-based insurance companies slowed in 2020 of supplementing the groups target capital struc- compared to 2019. In July 2020, ZhongAn Online ture in a low rate environment. The issue attractedP&C Insurance Co., Ltd (ZhongAn), issued its strong investor engagement and drew more than$600 million 3.125% senior notes due 2025 for 7.75 billion in demand. In the following month,working capital and general corporate purposes. Zurich Insurance Group announced the successfulSubsequently, ZhongAn issued another $300 placement of 750 million subordinated notes,million 3.50% senior notes due 2026 in the third following which German reinsurance house, multi- quarter of 2020 for working capital and general specialist CCR Re, successfully issued 300m Tier 2corporate purposes. In August 2020, AIA Group subordinated bonds in its first ever bond issuance.Limited listed its $10 billion global medium term The issue placed with over 150 investors with anote and securities program and subsequently total order book of more than 1.5 billion.issued $1.75 billion 3.20% subordinated and dated securities due 2040 under such program. Following the debut issuance by a European insurer of green bonds in 2019 (Pool Res UK-domiciledDespite the slowdown of issuances of conventional vehicle, Baltic PCC), issues of green bonds continueddebt securities in the insurance sector, the number to make headway in the European insurance capitalof issuances of ILS touching the region increased markets space during 2020. In July 2020, the marketsignificantly in 2020. For a review of the ILS markets saw the first green capital bond to be issued by anin 2020, [see ILS and Convergence Markets]. gAustrian insurance company, when UNIQA placed a 42 GLOBAL INSURANCE INDUSTRY|YEAR IN REVIEW 2020'