Insurer, IAG has mandated a new subordinated bond with a 12.3-year, non-call 7.3-year structure. That is, first call after 7.3 years, when investors would expect repayment, but the term can be extended out to 12.3 years.
Almost a year ago, IAG was in the market for a higher risk, additional Tier 1 hybrid. It raised $350 million with a floating rate coupon of 3-month BBSW +320 basis points.
IAG’s last subordinated issue was a 15.1NC5.1 transaction where it issued $400m at 3-month BBSW + 250 basis points.
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QBE, another insurer, printed $250m in a 12NC7 transaction mid November 2024, when it issued at 3m BBSW + 180 basis points.
Price guidance for IAG’s new issue has not been provided.
