Insurance Australia Group (ASX:IAG) priced AU$500 million of securities under its wholesale Australian dollar-denominated subordinated note offering, according to a Wednesday Australian bourse filing.
The subordinated notes are anticipated to qualify as tier-2 capital under the capital adequacy framework of the Australian Prudential Regulation Authority.
The issuance will pay interest on a quarterly basis at a floating rate equal to the three-month market rate plus a margin of 1.68% per annum.
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