AEGON has entered a cross-currency interest-rate swap to convert a CHF150 million (USD90 million) three-year bond into a synthetic euro-denominated liability. Wilma Schouten, capital markets officer in the Hague, said in the three-year swap it pays six-month Euribor and receives six-month Swiss LIBOR.
Schouten said the insurance company decided to issue the bond in Swiss francs because UBS Warburg approached it with investors in place. UBS is also the counterparty to the swap. She added AEGON does not keep any of its liabilities in Swiss francs so it always intended to swap the currency and it chose euros because it needed the single currency to meet other obligations.
