Bermuda-based Aurigen Reinsurance Ltd has sponsored Credit Agricole Securities (USA) Inc’s placement of CA$120 million of notes issued by Vecta I Ltd the first securitisation of Canadian life insurance embedded value.The deal also covered a closed block of policies reinsured by Aurigen Re between 2008 and 2010.The transaction included a single tranche rated BBB+ (sf) by Standard and Poor’s. The notes have an expected maturity of 6.25 years and a coupon rate of eight percent. Credit Agricole Securities was the structuring lead on the financing, and was joint book runner along with Swiss Re Capital Markets.Principal repayment on the notes will be linked to the emergence of future profits on the subject business consisting of twelve life reinsurance treaties underwritten by Aurigen Reinsurance Company, an affiliate of Aurigen Re, from six separate life-insurance companies.Independent third-party risk analysis for the notes was provided by Oliver Wyman.“We are very excited to have completed the very first Canadian embedded value securitisation,” said Alan Ryder, president and CEO of Aurigen Capital Ltd. “The Vecta transaction demonstrates Aurigen’s leadership, innovation and access to the capital markets. It greatly diversifies our existing capital structure and provides Aurigen with a substantial amount of additional capital to continue the development of its business.”Vincent Fleury, global securitisation head at Credit Agricole, said: ”We were delighted to advise Aurigen on this transaction which demonstrates our structuring and placement capabilities in this field.”The Vecta I notes were sold in a private placement pursuant to Rule 144A of the US Securities Act of 1933, as amended, and have not been registered under the Securities Act or any state securities laws; they may not be offered or sold in the US except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.