Mapfre has successfully completed a placement of Tier 2 subordinated debt securities amounting to 500 million euros, with an early redemption option in 2036 (11NC10) and final maturity in 2037, exclusively targeted at qualified investors.
The issuance was set with a coupon of 4.50% per year until June 2036. The securities will be traded on the AIAF market and will be considered as Tier 2 regulatory capital under the Solvency II regulation.
The transaction was very well received by international institutional investors, with demand exceeding €2.5 billion, representing more than five times the amount finally issued. More than 150 institutional investors participated in the placement.
Thanks to the strong demand, the initially announced spread was reduced by more than 30 basis points, to a final spread of MS + 145 bp.
By investor type, the issuance was mainly distributed among fund managers which accounted 68%, insurance companies and pension funds 20%, private banks and other financial entities 3%. By geographic distribution, the largest demand came from United Kingdom and Ireland 31%, followed by France 24%, Benelux 20%, Germany/Austria 10%, Spain 7%, and other European markets.
“Investor demand confirms their trust in Mapfre’s diversified business model, supported by its solvency and the Group’s capital structure. Once again, we seek to take advantage of favorable market conditions to continue boosting our financial strength,” said José Luis Jiménez, Mapfre’s CFO.
At the same time, Mapfre has invited, the holders of its subordinated notes with an early redemption option of March 2027, to offer these securities for a cash tender, a transaction that is subject to the execution of this new issue. The period for investors to submit their notes for tender closes at 5:00 p.m. on June 8.
The purchase price has been set at 101.15% of the nominal amount of the bonds and the results of this transaction will be announced on June 9.
These operations are framed within Mapfre’s financial strategy aimed at maintaining a solid, diversified, and efficient capital structure. Additionally, financial flexibility and solvency positioning are strengthened, with a Solvency II ratio of 205.3% at the end of 2025, while optimizing financial costs.
The main credit rating agencies maintain a positive valuation of the Group’s financial strength. In 2025, Fitch raised Mapfre’s credit rating to “A” with stable outlook, while S&P confirmed the “A-” rating and revised the outlook to positive.
The issuance was coordinated by Barclays and Citi as Global Coordinators. Barclays, BBVA, BofA Securities, Crédit Agricole CIB, Citi, Morgan Stanley, while Santander acted as Joint Lead Managers of the operation.
About Mapfre
Mapfre is a global insurance, reinsurance, assistance, and financial solutions company. It is the largest Spanish insurer in the world, a leading multinational insurance group in Latin America, and ranks sixth among the largest insurers in Europe by revenue. Mapfre employs more than 30,000 people worldwide and, in 2025, revenue amounted to €34.5 billion (+4%) and net earnings of €1.1 billion were reported (+19.6%).
More information at: https://www.mapfre.com/en/newsroom/
