In November 2016 IAG announced an offer of Capital Notes which included a reinvestment offer for eligible holders of IAG’s 2012 CPS Issue. Due to strong demand, the Broker Firm offer was subsequently increased from $300 million to $350 million. The reinvestment offer closed on 16 December 2016 and the Broker Firm offer closed on 21 December 2016.
The offer settled on 22 December 2016 when IAG confirmed the issue of 4,041,265 Capital Notes at $100 each raising $404.1 million of Additional Tier 1 Capital at a margin of 4.70% above the 3 month bank bill rate. All valid applications under the reinvestment offer were accepted in full contributing $224 million in proceeds.