Insurance Australia Group Limited (IAG) has announced an offer for up to $150m unsecured subordinated Capital Bonds (plus oversubscriptions).

The Margin and Minimum Interest Rate (7.50%) will be determined during the firm allocation process and will be announced on or before Wednesday, 16 November 2011.

Key terms:

        Opening Date:        16 November 2011
        Closing Date:        12 December 2011
        Rate Set Date:        13 December 2011
        Issue Date:        15 December 2011
        Listing Date:        19 December 2011
        Minimum interest rate:        7.50%
        Interest Payment Dates:        15 March, 15 June, 15 September and 15 December
        Maturity Date:        15 December 2036        
        Call Date:        15 December 2016, and each Interest Payment Date thereafter
        Reset Dates:         The first Call Date, and each 5th anniversary of the first Call Date.
        Minimum allocation        $5,000 with multiples of $1000 thereafter
        Listing         Application has been made to NZX for quotation on the NZDX
        Issuer Credit Rating         A+ by Standard &Poors
        Issue Credit Rating:        A- by Standard & Poors

The bond is expected to trade as a 5 year instrument in terms of pricing as it has 5 yearly calls