Challenger Limited (ASX:CGF) today announced it has commenced a process to replace Challenger Life Company’s (CLC’s) Tier 2 subordinated debt with a new Australian dollar Tier 2 subordinated debt issue.
CLC, rated A by S&P with a stable outlook, has mandated National Australia Bank, UBS and Westpac Banking Corporation to arrange a series of meetings with Australian and Asian based fixed income investors, commencing on 9 November 2017. A copy of the investor presentation to be used in these meetings is attached.
An Australian dollar denominated Tier 2 subordinated debt issue may follow these meetings, subject to market conditions. The subordinated debt issue will be rated by S&P and qualify as Tier 2 regulatory capital under the Australian Prudential Regulation Authority (APRA) Life and General Insurance Capital Standards. The timing and any amount raised under any new Tier 2 subordinated debt issuance has not been determined.
Subject to APRA approval, CLC has agreed to repay its existing $400 million Tier 2 subordinated debt instrument on 30 November 2017.
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