6 Commitments
The Company has established subordinated debt facilities which allow the Company to issue subordinated callable notes at any time. The Company pays a fee on the available commitment under the facility and an interest rate on issued notes. Notes, when issued, will be classified as subordinated debt. As of 31 December 2017, no notes have been issued under the facilities.
An overview of the subordinated debt facilities is provided in the following table:
| Download |
Instrument |
Issued in |
Currency |
Nominal value in millions |
Commitment fee (paid on undrawn amount) |
Interest rate on issued notes |
Facility first termination date |
Issued notes’ scheduled maturity date |
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Dated subordinated fixed-to-floating rate callable notes facility |
2015 |
USD |
700 |
3.53% |
5.75%1 |
2025 |
2050 |
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Dated subordinated fixed rate callable notes facility |
2016 |
USD |
400 |
3.92% |
6.05%1 |
2031 |
2056 |
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Dated subordinated fixed-to-floating rate callable notes facility |
2016 |
USD |
800 |
3.67% |
5.625%1 |
2027 |
2052 |
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Perpetual subordinated fixed spread callable notes facility |
2017 |
USD |
750 |
2.77% |
4.625%1 |
2022 |
Perpetual2 |
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The Company has entered into subordinated funding facilities with its subsidiary Swiss Reinsurance Company Ltd under which Swiss Reinsurance Company Ltd has the right, among others, to issue subordinated notes to the Company at any time. For its various rights, Swiss Reinsurance Company Ltd owes the Company an unconditional fixed commitment fee on the total facility amount, payable in annual instalments. Annually, Swiss Reinsurance Company Ltd receives a partial reimbursement of the commitment fee on the undrawn facility amount. As of 31 December 2017, the facilities were undrawn.
An overview of the subordinated funding facilities is provided in the following table:
| Download |
Instrument |
Borrower |
Issued in |
Currency |
Nominal value in millions |
Total commitment fee calculated and paid on nominal value |
Reimbursement fee paid on undrawn amount |
Net commitment fee paid on undrawn amount |
Maturity |
Subordinated funding facility |
Swiss Reinsurance Company Ltd |
2015 |
USD |
700 |
5.80% |
2.22% |
3.58% |
2030 |
Subordinated funding facility |
Swiss Reinsurance Company Ltd |
2016 |
USD |
400 |
6.10% |
2.13% |
3.97% |
2036 |
Subordinated funding facility |
Swiss Reinsurance Company Ltd |
2016 |
USD |
800 |
5.68% |
1.95% |
3.73% |
2032 |