IAG prices institutional subordinated debt issue
17 Aug 2020
Insurance Australia Group Limited (IAG) today advised that it has successfully priced $450 million of securities under the wholesale A$ subordinated debt offering announced today. The securities are scheduled to be issued on 24 August 2020.
The subordinated debt qualifies as Tier 2 Capital under the Australian Prudential Regulation Authority’s (APRA) capital adequacy framework for general insurers.
“We are pleased to have achieved such a positive outcome in these challenging times,” said IAG’s Acting Chief Financial Officer, Michelle McPherson.
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 2.45% per annum.