There are some aspects of this fund which may require extra consideration before deciding to invest.
FMA exemption
Some funds are exempted from the disclosure requirements, so certain information may not be available for these offers. Or the information provided might be in a different form, given the bespoke nature of the offer. Here's more on Financial Markets Authority exemptions.
Financial Markets Conduct (Disclosure Using Overseas GAAP) Exemption Notice 2021
Convertible financial product
This is an investment that may become changeable, or change, into another kind of investment. Convertibles are usually bonds or preferred shares that can be converted into common stock. They may offer protection against heavy losses, but also typically give up some increases in value.
The Notes are unsecured subordinated debt obligations of IAG. The Notes may convert into fully paid ordinary shares in the capital of IAG in certain circumstances.
Restrictions on transfer
There are rules around transfering in and out of this investment, which may depend on eligibility. For example, overseas investors may not be able to transfer into some New Zealand managed funds. Or there may be restrictions on withdrawals, such as not until age 65 for KiwiSaver funds.
Issuer can withhold payment
In this case, the provider of this investment may not pay investors back straight away. This is important to know and acknowledge as you research investments.
Issuer's description of this product:
The Notes are unsecured subordinated debt obligations of IAG. The Notes may convert into fully paid ordinary shares in the capital of IAG in certain circumstances.
Minimum investment
This is the minimum amount you would need to put into this in order to invest.
Closing date
This is when this offer closes to investors.
Maturity
Rate
This investment offer does not have a single set rate. This may mean that the rate is variable or that there are multiple rates available.
Key facts
Provider website
Intending to list
The issuer has indicated that they are intending to list this investment on a public exchange, or that it is already listed. See the listing here: nzx.com
Issuer's industry
Financial/insurance
Credit ratings
Credit ratings can help you understand whether your investment in bonds will pay or if you'll get your money back. They indicate the long-term ability of the issuer to repay its debts. See also the Reserve Bank's primer on credit ratings and a map of the three scales used by the rating agencies.
(Standard & Poor's)
This is the credit rating for this particular bond or debt security.
Issuer credit rating
This is the credit rating for the organisation issuing the bond or debt security.
Maturity
Maturity description
This investment offer finishes on the above date.
Rate
Rate calculation description
Fixed interest rate:
The interest rate will be the "Fixed Rate" until the "First Optional Redemption Date". The Fixed Rate is equal to the sum of the swap rate (a reference rate for a term equal to the period from the issue date to the First Optional Redemption Date) plus the "Margin". The Fixed Rate as determined on the rate set date and announced via NZX is 5.32% per annum.
Floating interest rate:
From the First Optional Redemption Date, the interest rate will be the "Floating Rate". The Floating Rate will be equal to the sum of the 3 month bank bill rate (a benchmark floating interest rate) plus the Margin. The Floating Rate will be determined by IAG on the first business day of each interest period during which the Floating Rate applies and announced by IAG via NZX on or about that date.
Margin:
The Margin as determined on the rate set date through the Bookbuild and announced via NZX is 1.90% per annum. The Margin will not change over the term of the Note
Key documents
These are the most important documents that a provider is required to file about this investment.
Product disclosure statement
Before you invest in a product like a fund, you are given a PDS which has essential details about it and the company providing it. Here's more on how to read a PDS.
IAG Tier 2 Offer 2022 - Product Dislosure Statement.pdf
How this investment works, including about the provider, risks, costs and potential returns
Additional disclosure documents
These are more documents from the provider that can contain interesting information.
IAG Tier 2 Offer 2022 - Other Material Information.pdf
IAG Tier 2 Offer 2022 - Investor Presentation.pdf
Additional details
Issuer details
Name
INSURANCE AUSTRALIA GROUP LIMITED
Type
Overseas Company
Industry
Financial/insurance
Website
Registration number in country of origin
ABN 60 090 739 923
Credit rating
Not provided
Supervisor
Name
THE NEW ZEALAND GUARDIAN TRUST COMPANY LIMITED
Offer details
Date registered
11 March 2022
Date opened
21 March 2022
Closing date
25 March 2022
Offer credit rating
BBB (Standard & Poor's) on 11 March 2022
Continuous issue
No
Further payments may be required
Yes
Restrictions on transfer
Yes
Issuer can withhold, reduce, or delay payment
Yes
Convertible product
Yes: The Notes are unsecured subordinated debt obligations of IAG. The Notes may convert into fully paid ordinary shares in the capital of IAG in certain circumstances.
Intending to list
Yes : nzx.com
Schedule 1 exemption
No
FMA exemption
Yes: Financial Markets Conduct (Disclosure Using Overseas GAAP) Exemption Notice 2021
Reference numbers
Offer
OFR13283: OFFER OF UNSECURED SUBORDINATED NOTES ("NOTES") BY INSURANCE AUSTRALIA GROUP LIMITED ("IAG")
Next steps
Want to know more about this investment or how it compares to others? Have a look at its peers.
Product disclosure statement
Take a deeper dive into the PDS, which has essential details about this offer and the company providing it. Here's more on how to read a PDS.
Market listing
The provider has indicated they are intending to list this investment, or that it is already listed, on a public securities market. Here's where to find the market listing: nzx.com
Getting investment advice
Good advice is gold. Everyone can benefit from expert advice, provided the adviser has your interests at heart. Here's how to find one and key questions to ask.
Interested in investing in this offer? Visit the provider's website. iag.com.au