7 Debt

In June 2018, the Company issued a six-year senior unsecured exchangeable instrument with issuer stock settlement. The instrument has a face value of USD 500 million, with a fixed coupon of 3.25% per annum payable semi-annually in arrear until the maturity date (13 June 2024).

To economically offset the settlement of a noteholder initiated exchange (in cash or in Swiss Re Ltd shares), the Company purchased matching call options on Swiss Re Ltd shares with a portion of the proceeds of the offering. Consequently, no new Swiss Re Ltd shares will be issued upon a noteholder initiated exchange. Further information are detailed in Note 11 “Debt and contingent capital instruments” in the 2018 Financial Report.

As of 31 December 2018, Swiss Re Ltd had outstanding debts of CHF 493 million (2017: CHF 0) due after five years.