Herbert Smith Freehills is delighted to have advised Suncorp Group Limited, Suncorp Insurance Holdings Limited and AAI Limited on AAI’s offer of new Tier 2 hybrid securities (Subordinated Notes). The proceeds received by AAI under the offer will be used for general corporate purposes and will form part of AAI’s shareholder funds investment portfolio.

The hybrid securities are floating rate, redeemable, unsecured subordinated notes issued by AAI and convertible into SGL shares. The offer is made to institutional and other wholesale market investors and is intended to raise A$330 million. The Subordinated Notes qualify as Tier 2 Capital under the prudential standard for general insurers GPS 112.

The Joint Lead Managers for the issue were UBS, National Australia Bank, and Westpac.

The Herbert Smith Freehills team was led by partners Patrick Lowden and Philippa Stone, supported by solicitor Michael Burrell and graduates Vivek Mahadevan and Mitchell Dearness.

Mr Lowden said, “Herbert Smith Freehills is delighted to have again advised Suncorp on this important transaction, having previously advised Suncorp on its A$225 million hybrid issue in November last year.”

Ms Stone commented “This is the latest in a succession of Australian financial services sector hybrid issues on which Herbert Smith Freehills has acted, and we are delighted to have had the opportunity to work with Suncorp on this transaction.”

King & Wood Mallesons advised the Joint Lead Managers.