QBE will settle and complete the issue of securities on 24th May, after it has announced US placement of $1 billion in subordinate debt.
QBE, known as Australia’s biggest insurance group as well as listed in the top 25 Global insurers, will release the debt notes to US institutional investors and will not be offered for sale in Australia.
QBE is looking to strengthen its balance sheet and provide funds for its growing operations in insurance and reinsurance markets after a string of natural disasters an claims with QBE’s CEO Frank O’Halloran saying “This tranche of GBP325 million of debt securities completes our lower tier 2 funding plans.”
The lower tier 2 will be treated by Australian Prudential Regulation Authority (APRA).
The long term securities which are set to reach maturity at 30 years, will be treated as debt under the Australian Accounting Standards. The securities will be set at a fixed rate of 7.25% and will be reset at ten year intervals.
QBE holds a strong position in the insurance market with the company having fore-casted a profit growth of about 30 per cent earlier this year The company offer a variety of insurance products and services in both personal and business aspects including Car insurance, Home and Contents, Boat, Workers Compensation, and more.
By Krystal Ayoub
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