EBRD Invests in Sava Re’s Historic Tier 3 Subordinated Bond Issuance, Boosting Slovenia’s Capital Markets

EBRD Invests in Sava Re’s Historic Tier 3 Subordinated Bond Issuance, Boosting Slovenia’s Capital Markets

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has invested €5 million in Pozavarovalnica Sava (Sava Re), facilitating the first-ever Tier 3 subordinated bond issuance by an insurer in Slovenia and the broader central and southeastern European region. The total issuance amounts to €50 million in euro-denominated bonds compliant with Solvency II regulations. This initiative aims to strengthen Slovenia’s capital markets and enhance Sava Re’s competitive position while broadening its investor base and diversifying funding sources. Both EBRD officials and Sava Re’s management expressed enthusiasm for the transaction and its potential to foster growth within the regional insurance market. Since 1992, the EBRD has invested over €1.6 billion in 109 projects in Slovenia.

(PRESS RELEASE) LONDON, 3-Oct-2024 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) has made a significant investment in Pozavarovalnica Sava (Sava Re), marking a landmark moment as it supports the first Tier 3 subordinated bond issuance by an insurer in Slovenia and the broader central and southeastern European region.

This inaugural issuance, totaling €50 million in euro-denominated subordinated bonds that comply with Solvency II regulations, aims to enhance Slovenia’s capital markets while bolstering Sava Re’s competitive positioning within the industry. EBRD’s investment amounts to €5 million, underscoring its commitment to advancing financial market development in the region.

The initiative not only highlights the potential for such bond issuances but also expands Sava Re’s investor base and diversifies its funding avenues. Additionally, it promotes regional consolidation, enhancing the efficiency of the insurance sector and facilitating greater market penetration and sustainable growth in the long term.

Alexander Saveliev, EBRD’s Head of Non-Bank Financial Institutions, remarked, “This project represents a significant step forward for Slovenia’s capital markets. We are delighted to lend our support to Sava Re in this pivotal transaction.”

Marko Jazbec, Chairman of the Management Board at Sava Re, expressed his satisfaction with the successful issuance: “We are grateful for the successful execution of this transaction and for the support from both international and domestic investors. We also acknowledge the EBRD’s enduring commitment to developing regional capital markets and its partnership with the Sava Insurance Group.”

Sava Re, listed on the Ljubljana Stock Exchange, serves as the parent company of the Sava Insurance Group. With over four decades of experience in international reinsurance, Sava Re offers a comprehensive range of reinsurance solutions, serving more than 350 clients across over 100 global markets. The Sava Insurance Group stands as one of the largest insurance entities in southeastern Europe, operating in sectors including reinsurance, life and non-life insurance, pension services, and asset management.

Since its establishment in Slovenia in 1992, the EBRD has invested more than €1.6 billion across 109 projects, reaffirming its commitment to fostering sustainable economic development in the country.

Media Contact:

Tel: +44 207 338 7805
Email: Group-PressUnit@ebrd.com

SOURCE: EBRD

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