The main goal of Aegon’s capital management is to manage the capital adequacy of its operating companies to high standards within leverage tolerances consistent with strong capitalization.
Debt Programs
Most of Aegon's external debt is issued by the parent company, Aegon N.V., as well as a limited number of other companies. Some of the securities issued by other Aegon Group companies are guaranteed by Aegon N.V.
Aegon N.V. has access to the capital markets through a USD 6 billion Program for the Issuance of Debt Instruments and US shelf registration. Aegon N.V. and Aegon Funding Corp. have also filed a Registration Document with the Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) in the Netherlands to facilitate the issuance of financial instruments under the European Prospectus Directive.
In addition, Aegon has access to domestic and international money markets through Aegon N.V.'s and Aegon Funding Company LLC's (guaranteed by Aegon N.V.) Euro, French and US commercial paper programs, which have a maximum combined outstanding of USD 4.5 billion. Aegon maintains back-up credit facilities with international lenders to support outstanding amounts under these commercial paper programs.
The company's principal arrangement is a syndicated EUR 2 billion back-up credit facility with a EUR 1 billion letter of credit sublimit, both maturing in 2017. Aegon also maintains a USD 2 billion revolving letter of credit facility of which USD 1.5 billion matures in 2015 and USD 0.5 billion matures in 2017 and USD 225 million of shorter dated bilateral back-up facilities. Aegon N.V. had not drawn any amounts under any of its liquidity back-up facilities as of December 31, 2011.
Fixed Income Securities
Aegon N.V. has issued senior and dated subordinated debt and capital securities.
Most of the senior debt has been issued in the form of fixed rate bonds under the USD 6 billion Program for the Issuance of Debt Instruments and the US shelf registration.
Most of the capital securities are perpetual fixed income securities which can be called and/or reset. These securities are subordinated to the senior debt of Aegon N.V.
