IAG prices institutional subordinated debt issue
20 Mar 2019
Insurance Australia Group Limited (IAG) today advised that it has successfully priced $450 million of securities under the wholesale A$ subordinated debt offering announced earlier today. The securities are scheduled to be issued on 28 March 2019.
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 $450 million issue will pay investors interest quarterly at a floating rate equal to the three-month market rate (currently BBSW) plus a margin of 2.35% per annum.