Insurance Australia Group Limited (IAG) has announced that it is making an offer of  NZ$150 million of unsecured subordinated bonds to the New Zealand public, with the option to accept oversubscriptions. The bonds have an A- rating.

The bonds have a term to maturity of 25 years and will be callable at IAG’s discretion (subject to the prior approval of the Australian Prudential Regulation Authority) on the fifth anniversary of their issue and on each interest payment date thereafter. Interest would be payable quarterly in arrears.

The minimum interest rate will be 7.50% For more information about the offer go to IAGBonds or to download the investment statement go to IAG Investment Statement.