- Suncorp Group has completed the Bookbuild process for its offer of Capital Notes 4.
- The Company assigned AU$375 million in firm commitments to Syndicate Brokers and Institutional Investors.
- The proceeds would be used to fund the capital needs of one or more regulated entities within the Suncorp Group.
Suncorp Group Limited (ASX:SUN) stocks are gaining investors’ attention following its announcement on the successful completion of the Bookbuild process for its Offer of Capital Notes 4.
Suncorp Group provides insurance, banking, and wealth products and services via some of ANZ’s most recognised financial brands.
The Company announced the launch of the Offer of Capital Notes 4 on 30 August 2021. It highlighted that it intends to raise AU$350 million with the ability to raise more or less via the issue of Suncorp Capital Notes 4.
Through the Bookbuild process, the Company, on 01 September 2021, assigned AU$375 million in firm commitments to Syndicate Brokers and Institutional Investors. The margin was set at 2.9% per annum (Margin range 2.90% to 3.10%). As per the investor demand, SUN increased the size of the Offer from AU$350 million to AU$375 million, with the ability to raise more or less.
The final size of the Offer would depend on the volume of applications received and accepted under the Securityholder Offer. The Offer would open on 07 September 2021 and close on 20 September 2021 at 5:00 PM Sydney time.
Purpose of issuing Capital Notes 4:
Capital Notes 4 is being issued as a component of the Company’s ongoing funding and capital management strategy. The proceeds via the issue of Capital Notes 4 would be used to fund the capital needs of one or more regulated entities within the Suncorp Group. Besides, these funds would also be used for general corporate and funding purposes.
Features of Capital Notes 4:
- Capital Notes 4 are fully paid, perpetual, unsecured, subordinated, and mandatorily convertible notes.
- They are designed to pay discretionary, non-cumulative floating rate Distributions. However, it would depend on no Payment Condition existing.
- Distributions are likely to be fully franked and planned to be paid quarterly.
- The Distribution Rate would be calculated by adding the sum of the 3-month Bank Bill Rate and the margin multiplied by (1-corporate tax rate).
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At AEST 11:08 AM, SUN shares are trading at AU$12.590, up 0.238% from their previous close. It has a market cap of AU$16.11 billion.