Monday 7th November 2011 |
Text too small? |
Insurance Australia Group, the Australian insurer whose brands include State Insurance and NZI, will pay at least 7.5 percent in annual interest to bondholders in New Zealand to raise as much as $250 million.
The insurer is offering $150 million of unsecured, unsubordinated notes to the New Zealand public, with an option to extend that by a further $100 million, it said in a statement.
The bonds will mature in 2036, paying a minimum interest rate of 7.5 percent until 2016, resetting every five years from the issue date. The bonds, which are to trade on the NZDX, have been rated A- by Standard & Poor’s.
The issue is part of the insurer’s ongoing capital management programme, with net proceeds used for general corporate purposes and offering it flexibility for future refinancing, it said.
Joint lead managers are ANZ, Bank of New Zealand, Craigs Investment Partners, Forsyth Barr and UBS New Zealand, while co-managers are Macquarie and Westpac Banking.
The Australian insurer’s New Zealand businesses posted a second-half loss of A$86 million from claims from the Canterbury earthquakes and rising costs of reinsurance.
IAG’s shares were unchanged at A$3.13 on the ASX today, and have shed 19 percent this year.
BusinessDesk.co.nz
No comments yet
NZAS Sign Long Term Contracts
Amended - IFT230 Maturity and Exchange for IFT350
Synlait forecast milk price update
Chorus submits 2023 fibre regulatory report
Infratil Infrastructure Bond Exchange Offer opens
May 31st Morning Report
NZAS and Mercury sign long-term agreement, creating opportunity for future investment in renewables
Meridian and NZAS sign long term contracts
ArborGen Holdings Results for Year Ended 31 March 2024
BAI - Full unaudited results to 31 March 2024