Suncorp intends to raise $250m, with the ability to raise more or less, through an offer of convertible preference shares (CPS3) to fund the capital requirements of one or more regulated entities within the
Suncorp Group.
CPS3 and Suncorp’s other equity capital help to protect Suncorp Group’s depositors, policyholders and other creditors by providing a loss-absorbing capital buffer that supports losses that may be incurred by the Group, according to the prospectus.
Steve Johnston, Suncorp Group CFO said: "The CPS3 offer will further strengthen Suncorp’s capital position and is a key part of our ongoing funding and capital management strategy.”
UBS has been appointed as sole arranger and joint lead manager. Deutsche Bank and National Australia Bank have been appointed as joint lead managers.
The bookbuild will take place on 7 April. A replacement prospectus will be placed with
ASIC on April. On the same date, the offer will open. The securityholder offer will close on 30 April, and the broker firm offer will close on 7 May.
CPS3 will commence trading on ASX, on a deferred settlement basis, on 9 May, and, on a normal settlement basis, 14 May.
CPS3 are not guaranteed by, nor are they deposit or policy liabilities of, any member of the Suncorp Group.
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