IAG prices institutional subordinated debt issue

Insurance Australia Group Limited (IAG) today advised that it has successfully priced $350 million of securities under the wholesale A$ subordinated debt offering announced on 22 March 2018. The securities are scheduled to be issued on 29 March 2018.

The subordinated debt qualifies as Tier 2 Capital under the Australian Prudential Regulation Authority’s (APRA) capital adequacy framework for general insurers.

IAG’s Chief Financial Officer, Nick Hawkins, said “we are very pleased with the broad-based support from domestic and international institutions.”

The $350 million issue will pay investors interest quarterly at a floating rate equal to the three month bank bill swap rate (BBSW) plus a margin of 2.10% per annum.

For further information, please see following:

  • Investor Terms Sheet

 

Last updated
23/03/2018