NZ insurer CBL issues bond for Australian investors
10 April, 2014 MEDIA RELEASE
NZ insurer CBL Corporation issues bond for Australian investors
FIIG Securities today closed a $55 million bond issue for New Zealand credit and financial risk insurer CBL Corporation Limited, the first time it has arranged a bond for a non-Australian company.
The five year, senior secured fixed-rate Australian dollar note carries an indicative interest rate of 8.25% per annum paid semi-annually in arrears.
FIIG CEO Mark Paton said the bond was yet another first for FIIG as it continued to develop the path to the Australian bond market for mid-cap companies.
“This is the eighth bond we have brought to market for mid-cap companies, the first for a New Zealand-based company and the first for a group with a credit rating,” Mr Paton said.
“This will take the total raised to more than $400 million in a relatively short time showing that this path to the market is well and truly open and growing rapidly.”
CBL Corporation’s main operating entity is CBL Insurance Limited, a New Zealand-licensed non-life insurer which is supervised and regulated by the Reserve Bank of New Zealand.
CBL Insurance currently has an investment grade rating of B+/bbb- (outlook positive) from AM Best Ratings Agency, a specialist insurance rating agency that also rates groups such as QBE and Swiss Re.