Insurance Australia Group Limited : IAG considers New Zealand subordinated bond issue
10/25/2011| 07:40pm US/Eastern
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IAG considers New Zealand subordinated bond issue
Insurance Australia Group Limited (IAG) advised shareholders
at its annual general meeting today it is considering making
an offer of NZ$150 million of unsecured subordinated bonds to
the New Zealand public, with the option to accept
oversubscriptions.
IAG Chief Financial Officer, Mr Nick Hawkins said the issue
would be part of the Group's ongoing capital management
programme, with net proceeds to be used for general corporate
purposes and to provide IAG with added flexibility in
managing its future refinancing requirements.
"The New Zealand bond issue would be in accordance with our
philosophy of maintaining a diverse capital base and would
act as a natural currency hedge for our New Zealand
operations," Mr Hawkins said.
It is expected the bonds would have a term to maturity of 25
years and be callable at IAG's discretion (subject to the
prior approval of the Australian Prudential Regulation
Authority) on the fifth anniversary of their issue and on
each interest payment date thereafter. Interest would be
payable quarterly in arrears. An announcement of the minimum
interest rate until the first call date and the margin would
be made on or around the opening of the offer, expected to be
in November 2011.
IAG expects that the bonds would be assigned a credit rating
of 'A-' by Standard & Poor's.
Full details of the issue would be contained in an Investment
Statement and Prospectus.
IAG is seeking preliminary indications of interest and New
Zealand investors may register their interest in the offer by
contacting the Lead Arrangers on the numbers below, or their
financial adviser.
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ANZ
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New Zealand toll free: 0800 269 476
www.anz.co.nz/ipo
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UBS New Zealand Limited
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New Zealand toll free: 0800 200 221
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No money is currently being sought and no applications for
bonds will be accepted or money received until the subscriber
has received an Investment Statement. Indications of interest
will not involve an obligation or commitment of any kind.
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