QBE Insurance has successfully priced a $US300 million ($462 million) issuance of fixed rate resetting subordinated notes, set to mature in 2037. This financial move will enable the company to meet Tier 2 capital requirements under the Australian Prudential Regulation Authority’s (APRA) framework. QBE Insurance Group is one of the world’s largest insurance and reinsurance companies. The group’s operations span across numerous countries, offering a wide array of insurance products and services.
The notes will carry an initial fixed interest rate of 5.239 per cent per annum. This rate will remain in effect until 2032, providing investors with a stable return for the initial term. Following this period, the interest rate will be reset based on prevailing US Treasury yields, plus a margin of 1.35 per cent.
With a term of 12 years, the notes are scheduled to mature in November 2037. The issuance allows QBE to strengthen its capital base while offering investors an opportunity to invest in a well-established insurance organisation. This strategic financial manoeuvre underscores QBE’s commitment to maintaining a robust capital structure and meeting regulatory requirements.
