(Bloomberg) -- Ace Ltd. is said to be planning to sell $5.3billion in bonds to finance its acquisition of Chubb Corp.

The longest portion, a 30-year bond, may yield as much as 1.70percentage points more than comparable government securities,according to a person with knowledge of the deal. The debt sale, tohelp close a deal valued at about $30 billion, will be issued in asmany as four parts, the company said in an Oct. 23 filing.

The deal, announced in July, will be paid with roughlyhalf in stock and the rest in cash and debt. Ace, led by Chief Executive Officer Evan Greenberg,forecast annual savings of about $650 million by the third yearafter closing. The deal will help the Zurich-based company tocompete against rivals such as American International Group Inc.and Allianz SE.

“This integration will be far more operationally taxing than anyAce has previously tackled,” Josh Stirling, a Sanford C. Bernsteinanalyst with an "outperform" rating on the stock, said in an Oct.21 note. “We believe Ace is a well-run firm, which we wouldn’t berecommending if we didn’t think it had learned from the obviouslessons of the industry’s history.”

If the Chubb acquisition isn’t consummated or the mergeragreement is terminated by Sept. 30, 2016, Ace will be required toredeem all of the notes at a price equivalent to 101% of theprincipal amount, plus accrued and unpaid interest, according tothe person with knowledge of the deal.

Ace shares have declined 0.3 percent this year, trailing the 0.2percent gain in the Standard & Poor’s 500 Index. The BloombergWorld Insurance Index has dropped 4.3 percent.

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