The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Allianz in wonderland

German insurer Allianz must be happy. It says it has created a new product, developed with UBS Warburg, that will bring joy to investors, to Allianz's portfolio companies and most of all to Allianz itself. It's only a few of UBS Warburg's rival banks that cannot quite share the joy.

Allianz's three-year deal, worth e2 billion, is called market index-linked equity security (miles) and is similar to a mandatory convertible bond in that it will be converted into shares at maturity in February 2004 - with the option of early conversion after March 1 2002.

But miles is unique: it will be exchanged into the shares not of one company - as is usual on equity-linked issues - but into shares of one of three German blue chips: BASF, E.ON or Munich Re. Moreover, holders of the miles will not receive a fixed coupon but rather a return of 1.25% over the DAX, as valued on February 20 in 2002, 2003 and 2004.

International equity-linked bookrunners Jan - 19 Dec 2000*

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree