This offer closed on:
06 December 2019

Suncorp Group

Suncorp Group Limited

Suncorp Capital Notes 3

Suncorp Group Limited (SUN) has announced it is seeking to raise $300 million(1). through the issue of Suncorp Capital Notes 3 (SUNPH)(2).


Suncorp Capital Notes 3 may be suitable for investors looking for regular fully franked income by way of floating rate distributions from a top-20 ASX-listed group providing banking, wealth management and insurance products and services and offers investors the opportunity to further diversify their income portfolio.


The Offer includes a Reinvestment Offer to all eligible Suncorp Convertibles Preference Share (CPS3) (SUNPE) Holders. The record date for eligible SUNPE Holders is 6 November 2019.


Key features of the Offer

  • Ability to secure a Broker Firm allocation via Morgans in Suncorp Capital Notes 3
  • Opportunity to re-invest Suncorp CPS3 buy-back proceeds ($100 per Note) into Suncorp Capital Notes 3 ($100 per Note) and maintain an exposure to Suncorp beyond the redemption date for Suncorp CPS3
  • Suncorp Capital Notes 3 have a face value of $100 and are redeemable by the issuer on 17 June 2026(3)
  • If not redeemed before, Suncorp Capital Notes 3 convert into Suncorp shares on 17 June 2028(4)
  • Quarterly gross distributions(5) equal to the 3 month bank bill rate plus a margin of 3.00% i.e. approximately 3.90%p.a. (6)
  • Distributions are discretionary, non-cumulative but must be paid ahead of ordinary share dividends, and if not paid, dividend and capital restrictions apply to Ordinary Shares
  • Suncorp Capital Notes 3 are Basel III compliant regulatory capital instruments and contain a non-viability trigger condition which may impact their value in certain circumstances(7)
  • ASX listed liquidity(8)
  • Issuer: Suncorp Group Limited (SUN)

    Transaction: Additional Tier 1 Regulatory Capital Note issue

    Morgans Role: Joint Lead Manager

    Offer Size: $300 million

    Offer Open: 19 November 2019

    Morgans Closing Date: 6 December 2019

    Investors should note that investments in Suncorp Capital Notes 3 are an investment in Suncorp and may be affected by the ongoing performance, financial position and solvency of Suncorp. Suncorp Capital Notes 3 are not deposit or policy liabilities of Suncorp, or any other member of the Suncorp Group, are not protected accounts or policies and are not  guaranteed or insured by any government, government agency or compensation scheme of Australia or any other jurisdiction.
    There are a number of risks associated with an investment in Suncorp Capital Notes 3.  Before applying for Suncorp Capital Notes 3 all investors should consider whether Suncorp Capital Notes 3 are a suitable investment for them including by considering the key risks as outlined in Sections 1.5 and 5 of the Prospectus.

    1. Suncorp may issue more or less than $300 million of Suncorp Capital Notes 3.
    2. Morgans will receive fees for its role.
    3. Subject to APRA approval.
    4. Conversion is subject to conversion tests as outlined in the Prospectus.
    5. Distributions are non-cumulative, paid at the discretion of Suncorp and subject to distribution payment conditions.
    6. Based on 3 Month Bank Bill rate of 0.90%
    7. Such conditions may in certain circumstances impact the security's value; full detail is contained in the Prospectus and Morgans Offer Summary.
    8. Application will be made to list Suncorp Capital Notes 3 on ASX.

    More information

    If you have any questions about the offer, please contact your Morgans adviser, call 134 226 or find your nearest office here.

Download Prospectus

Suncorp Capital Notes 3 are being offered only in Australia and the Prospectus will only constitute an offer to a person receiving it in Australia. Not for distribution, directly or indirectly, in the United States or to, or for the account or benefit of, US Persons, except in accordance with an available exemption from the registration requirements of the US Securities Act. The distribution of the Prospectus (including an electronic copy) in jurisdictions outside Australia may be restricted by law.

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