AMP Limited has announced it will redeem all $275 million of its AMP Capital Notes 2 on December 16. The company, a wealth management firm that provides financial advice, superannuation, and investment solutions, said that holders registered as of December 8 will receive $100 per note. In addition to the principal repayment, noteholders will also receive a final distribution of $1.8508 per note, franked at 20 per cent.
The AMP Capital Notes 2 were initially issued in December 2019. The final day of trading for these notes on the ASX will be December 4, giving investors a limited window to trade before the redemption occurs. The redemption aligns with AMP’s ongoing capital management strategy.
AMP has clarified that this redemption decision does not signal any intention to redeem other regulatory capital instruments in the future. The company regularly assesses its capital structure to ensure it remains efficient and aligned with its strategic objectives.
This move is expected to simplify AMP’s balance sheet and reduce ongoing interest expenses. The redemption will be funded from existing cash reserves, reflecting the company’s strong liquidity position.
