Challenger (ASX:CGF) announced Challenger Life Company has received commitment from institutional and wholesale investors to subscribe for $400 million in notes which will qualify for Tier 2 capital.
Challenger’s Chief Financial Officer Andrew Tobin said the company is pleased with the strong demand from investors and intends to use the proceeds to replace existing subordinated debt.
The notes are expected to be issued by 24 November 2017.
They have a term of 25 years with maturity until November 2024 with the option to redeem in November 2022.
The notes will have a face value of $10,000 per note with a minimum subscription of $500,000.
Shares in Challenger (ASX:CGF) closed 1.24 per cent lower to $13.52.