Suncorp (ASX:SUN) redeems capital notes worth AU$375M

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Suncorp (ASX:SUN) redeems capital notes worth AU$375M

Suncorp (SUN) share price
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Highlights

  • Suncorp shares traded in green on Wednesday on the news of capital notes redemption. 
  • Suncorp has secured APRA approval for redeeming capital notes. 
  • The redemption will take place on 17 June 2022. 

The shares of Suncorp Group Limited (ASX:SUN) closed 0.412% higher at AU$12.160 per share on the ASX today (25 May). Over 2 million shares of Suncorp were traded during today's trading session on the ASX. 

The ASX-listed insurance company announced that it would redeem all the Suncorp Capital Notes worth AU$375 million issued on 5 May 2017. The notes were trading under the ASX code 'SUNPF'.  

The share price of Suncorp has gained almost by 11% on the ASX over the past 12 months. On the other hand, Suncorp's year-to-date share price also gained approximately by 5.74% at 2:30 PM AEST on the ASX today (25 May).

Suncorp's decision to redeem its capital notes is aligned with the terms of the note. According to the note terms, Suncorp may either choose to convert, redeem, or resell some or all the capital notes on 17 June 2022. However, it is subjected to prior written approval from APRA. 

Suncorp's decision was supported by APRA and has been approved by the same. 

Read more: Suncorp Group (ASX:SUN) releases 2Q22 results, shares fall

On 17 June 2022, each Suncorp capital note holder will be eligible to receive AU$100 per note as its face value along with the final distribution payment of AU$0.7516 per note for each note held up to or on 2 June 2022. 

The notes will trade last on ASX on 31 May 2022. Meanwhile, Suncorp informed that the Australian taxation consequences related to the redemption and final distribution payments might differ according to individual circumstances. 

Therefore, Suncorp also recommended to its note holders to seek independent tax advice.

The important dates related to the redemption are:

Image Source © 2022 Kalkine Media ®

About Suncorp: 

Suncorp Group Limited is an ASX-listed insurance company with a market capitalsation of AU$15.29 billion. The company primarily deals with offering personal insurance, commercial insurance, general insurance, banking products and life insurance to its clients. Suncorp mainly serves in retail, commercial and corporate sectors across Australia and New Zealand. 

Suncorp was established in 2010 and has an employee strength of 13,400. The headquarter of Suncorp is located in Brisbane, Australia. 

Read more: SCG, FPH, WTC, SUN: How are these stocks faring today on ASX?

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