IAG offers $400 million in notes to New Zealand investors

Insurance Australia Group (IAG) has offered up to $400 million of unsecured subordinated notes to New Zealand retail investors and certain institutional investors.

IAG said the offer consists of two separate parts:

• A direct re-investment offer, available only to New Zealand resident investors in unsecured subordinated convertible notes issued by IAG in 2016 , whose investment is not held under a custody arrangement
• A primary offer, reserved for clients of the joint lead managers, co-managers, primary market participants, and other persons invited to participate in the bookbuild, including New Zealand resident clients whose investment in 2016 notes is held under a custody arrangement.

Both offers were opened on March 21 and are expected to close at 12pm on March 25. The notes’ tentative issue date is on April 5.

IAG said there is no public pool for the offer, and investors can register their interest in the primary offer by contacting any of the joint lead managers, co-managers or their financial adviser. The offer is being made in accordance with the Financial Markets Conduct Act 2013.