Suncorp Group Limited
(ASX:SUN) has advised that its wholly-owned subsidiary, AAI Limited has successfully priced an issue of $225 million floating rate subordinated notes in an offering to institutional and other wholesale market investors.
AAI operates the Suncorp Group’s Australian General Insurance businesses and the subordinated notes qualify as tier 2 capital under the APRA regulations.
The subordinated notes will mature on November 18, 2040 and have quarterly, cumulative, deferrable interest payments at a floating rate equal to the three month bank bill swap rate.
The notes will also have a margin of 3.3 per cent per annum.
Suncorp reported a net profit of $1.14 billion at 30 June 2015.
