The company has elevated additional information to its web site on each Upper Tier 2 and Tier 1 perpetual debenture
, including CUSIP numbers for each security, book and market values, ratings and more.
With no action taken by the FASB in the fourth quarter, Aflac continued to apply its debt impairment model to its perpetual debenture
investments, which Aflac has applied for reporting periods commencing after June 30, 2008.
At the end of 2008, 98% of the debt securities and perpetual debentures
that we own were investment grade.
Recent market activity has weakened the perpetual debenture
securities' valuation over recent months.
The perpetual debenture
portfolio is largely invested in European banks, some of whom have been under considerable financial stress.
The issue size, although originally targeted at THB 10,000 million, was upsized to THB 15,000 million, the largest ever issue of corporate perpetual debentures
in Thailand, to accommodate excess demand from investors with an over-subscription of around 1.
75% Notes due 2014 (the "Eurobonds") and outstanding series of Perpetual Debentures
for new senior secured notes to be denominated in Dollars or in Euros.
196% Fixed-to-Floating Rate Callable Perpetual Debentures
issued by C5 Capital (SPV) Limited, at U.
euro]147 million of Perpetual Debentures
issued by a special purpose vehicle
277% Fixed-to-Floating Rate Callable Perpetual Debentures
(ISIN: XS0300179198; Common Code: 030017919) issued by C-10 EUR Capital (SPV) Limited and held by the investor (including accrued interest thereon) for U.
Total debt plus perpetual notes decreased US$1,581 million, reflecting prepayments under the Financing Agreement, a positive conversion effect during the quarter, as well as a reduction in debt resulting from the exchange of a substantial portion of our perpetual debentures
for new senior secured notes.
437 million during the current quarter, as a result of the recently completed exchange of the company's outstanding perpetual debentures