The Insurance Australia Group Ltd (ASX: IAG) share price is moving forward mid-morning on Friday. This comes after the insurance giant provided a market release in relation to its subordinated notes.
At the time of writing, IAG shares are up 0.12% to $4.34 apiece. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.13% to 7,121 points.
Let's take a closer look at what the company updated the ASX with today.
What did IAG announce?
In today's statement, IAG advised it has registered its product disclosure statement for an offer of unsecured subordinated notes.
This will see up to NZ$400 million (A$373.33 million) of notes made available to New Zealand retail investors and certain institutional investors.
This will comprise a direct reinvestment offer for up to NZ$30 million (A$27.99 million), and a primary offer for up to NZ$370 million (A$345.24 million).
Both offers are expected to open on 21 March 2022, with the indicative margin expected to be announced via the New Zealand stock exchange (NZX) on the same date.
The offer is set to close on 25 March 2022, and the fixed rate will be revealed on or about the same day.
In addition, the notes will be issued on 5 April 2022 and quoted on the NZX Debt Market the following day.
The first interest payment date falls on 15 June 2022, with quarterly intervals thereafter.
The maturity date for the notes is 15 June 2038.
IAG management noted that the offer is part of the company's capital management strategy. The proceeds will be used for general corporate purposes, including the refinancing of existing debt.
About the IAG share price
Over the past 12 months, IAG shares have been somewhat volatile, moving in peaks and troughs throughout the period.
The shares have lost around 6% in value since this time last year and they are still heavily down from pre-pandemic levels. In early 2020, the IAG share price was as high as $8 before plummeting to multi-year lows in the COVID crash.
IAG commands a market capitalisation of roughly $10.6 billion with more than 2.46 billion shares outstanding.
