Insurance Australia Group is seeking to raise $400 million through the offer of IAG Capital Notes 2, which the company says is part of its capital management strategy.
Proceeds will be used for general corporate purposes and to refinance existing Capital Notes 1. IAG Capital Notes 1 (ASX:IAGPD) offer was issued in December 2016 and funds raised with this new offer will also be used to finance reinvestment into Capital Notes 2.
The distribution rate will be the 3-month Bank Bill Rate plus the Margin, multiplied by the Franking Adjustment Factor. The Margin will be determined by the Bookbuild but is expected to be in the range of 3.50% to 3.70% per annum.
There are four Optional Exchange Dates (15 June 2029, 15 September 2029, 15 December 2029, and 15 March 2030). The scheduled mandatory conversion date is 15 March 2032.
IAG Capital Notes 2 are expected to trade on the ASX under the code IAGPE. Commencement of normal settlement trading is expected on 23 December 2022.
Also read: BOQ Capital Notes 3 Closes & Redeems Members Equity
UBS has been appointed as arranger and joint lead managers of the offer are UBS, ANZ, Commonwealth Bank, Morgans, NAB and Westpac.
Insurance Australia Group is one of Australia’s largest insurers with brands including NRMA, CGU Insurance, SGIO and SGIC.
Dexus Prices Exchangeable Notes
Last week, real estate giant Dexus priced A$500 million of Guaranteed Exchangeable Notes due November 2027.
The notes will pay a fixed coupon rate of 3.5% per annum and are exchangeable into Dexus Stapled Securities at an initial exchange price of A$9.79 per security, reflecting a premium of 30% to the reference price of $A7.53 per security.
Dexus turned to the capital markets with Bank of America to launch the raising.
