Insurance Australia : IAG settles its Capital Notes offer

IAG Chief Financial Officer Nick Hawkins said the Capital Notes offer formed an important part of the Group's ongoing capital management strategy. 'We're very pleased with the response to the offer from both existing IAG Convertible Preference Share (CPS) Holders who are reinvesting in Capital Notes, as well as from new investors,' Mr Hawkins said.

Holding Statements confirming the Capital Notes issued to Applicants will be despatched by Thursday, 29 December 2016.

Capital Notes will commence trading on the ASX under code IAGPD on a deferred settlement basis tomorrow, Friday, 23 December 2016 and on a normal T+2 settlement basis on Friday,
30 December 2016.

Applicants are responsible for confirming their holding before trading in Capital Notes. Applicants who sell their Capital Notes before receiving their Holding Statement do so at their own risk.

First Distribution

The first Distribution will be $1.0339 per Capital Note and is calculated as follows:

Other information

• All valid Applications received from Eligible CPS Holders under the Reinvestment Offer have been accepted in full. CPS Holder Applicants can obtain information about their allocation of Capital Notes by calling the IAG Capital Notes information line on 1300 647 382 (within Australia) or +61 3 9415 4123 (Monday to Friday, 8:30am to 5:00pm Sydney time). Allocations to Syndicate Brokers were determined pursuant to the Bookbuild which was completed on 24 November 2016. Broker Firm Applicants should confirm their allocation of Capital Notes with their Syndicate Broker. Successful Institutional Investors were allocated Capital Notes under the Institutional Offer.
• For the purposes of the Conversion calculations, the Issue Date VWAP is $5.75 and the initial Maximum Conversion Number is 34.7826 Ordinary Shares per Capital Note in relation to Conversion occurring on a Mandatory Conversion Date and 86.9565 Ordinary Shares per Capital Note in relation to Conversion occurring at any other time.
• IAG has today completed the buy-back and cancellation of 2,243,578 Reinvested CPS meaning 1,530,150 CPS remain on issue and quoted on the ASX.
• IAG has today published an advertisement in The Australian Financial Review and The Australian regarding the basis of allocation of the Capital Notes. A copy of the advertisement is attached to this announcement.
• Also attached to this announcement is a list of the twenty largest holders of Capital Notes and a distribution schedule of the number of holders of Capital Notes.
• 5,109 Capital Notes were purchased by directors and their associates.
• Unless otherwise specified, capitalised terms in this announcement have the meaning given to them in the IAG Capital Notes Prospectus dated 29 November 2016.

Top 20 Holders of Capital Notes