Allianz Raises $1.25 Billion in Perpetual-Bond Litmus Test

Allianz SE sold $1.25 billion of perpetual notes Tuesday, the German insurer’s latest batch of risky bonds that investors said could set the tone for the subordinated debt market.

The Restricted Tier 1 bond has an annual coupon of 6.55%, down from initial price talk of about 7.125%, according to a person familiar with the matter who asked not to be identified. The deal’s book size closed above $7 billion, after investors placed more than $12.3 billion of orders.