Insurance Australia Group this week announced the offer of Capital Notes 3, seeking to raise A$300 million. The offer is part of IAG’s capital management strategy and the proceeds will be used for general corporate purposes.
IAG Capital Notes 3 are perpetual, convertible, subordinated unsecured notes, issued by IAG.
On Wednesday, IAG announced it has completed its bookbuild and allocated $350 million under the offer with the margin being set at 3.20% per annum. It was expected to be in the range of 3.20% to 3.40% per annum above 3-month BBSW.
The offer is expected to close on 21 March 2024. A replacement prospectus is expected to be lodged on 12 March 2024.
The scheduled mandatory conversion date is 15 September 2033, with optional exchange dates of 15 Dec 2030; 15 March 2031; 15 June 2031; and 15 Sept 2031.
UBS AG is the arranger and the lead managers are ANZ, Commonwealth Bank of Australia, National Australia Bank, UBS, and Westpac Institutional Bank. Co-managers are JBWere, LGT Crestone Wealth Management, and Wilsons Advisory and Stockbroking.
The offer is open to eligible clients of the syndicate brokers and institutional investors wishing to make a new investment in CN3.
Last month, ANZ announced that it had set the margin at 2.90% per annum for ANZ Capital Notes 9. This was at the lower end of its previous guidance of 290-310bp above the 3-month BBSW.
Article updated at noon 6 March 2024.
Bendigo and Adelaide Bank CN2
Bendigo and Adelaide Bank (ASX:BEN) has today issued a replacement prospectus for its Bendigo and Adelaide Capital Notes 2 offer after previously confirming it had allocated $300 million under the offer with the margin being set at 3.20% per annum.
The bank had originally set out to raise $250 million through the offer. The proceeds will be used to fund the redemption of Converting Preference Shares 4 that are reinvested in CN2 under the offer and for general corporate purposes.
