Major insurer IAG – along with its subsidiary, IAG Finance Limited – has announced that all outstanding Reset Exchangeable Securities (RES) will be redeemed on December 16, 2019.

The firm informed investors about its redemption plans in its FY19 Investor Report and Annual Report.

On December 16, each RES holder will receive a redemption amount of $100 with a final interest payment of $0.9656 for each RES held on December 06, 2019 – the recorded date for payment of the interest payment.

“The Registrar will pay the Redemption Amount and Interest Amount by way of direct credit (electronic funds transfer),” IAG wrote in its letter.

“Please ensure that your account details have been notified to the Registrar and remain up to date. You do not need to take any action in response to this notice unless you wish to amend your account details. Any changes must be made before 5pm (Sydney time) on December 06, 2019.”

The total redemption amount payable in respect of all RES is $550 million.

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The insurance firm also announced that the last day of RES trading on the Australian Securities Exchange (ASX) is on December 04, 2019.

It has warned investors that they will not be entitled to receive the redemption amount or interest payment for RES sold on or before the final day of trading.

“The Australian taxation consequences in relation to the Redemption Amount and the Interest Payment may vary according to individual circumstances. It is recommended that you seek independent tax advice,” IAG said.