Suncorp Group Limited (Suncorp) today announced its intention to issue a new perpetual, subordinated, convertible, unsecured security, Suncorp Capital Notes (Capital Notes), to raise $250 million with the ability to raise more or less (the Offer). Capital Notes are expected to be quoted and tradable on the ASX.

Distributions are floating rate, discretionary, non-cumulative, expected to be fully franked and scheduled to be paid quarterly. Suncorp has the option to Exchange the Capital Notes on 17 June 2022 or following certain other events, subject to APRA's prior written approval and certain other conditions. If still outstanding, Capital Notes will mandatorily convert into Ordinary Shares of Suncorp on 17 June 2024 (subject to certain conditions being satisfied).

The Offer comprises:

– an Institutional Offer to certain Institutional Investors;

– a Broker Firm Offer made to Australian resident retail and high net worth clients of Syndicate Brokers; and

– a Securityholder Offer made to Eligible Securityholders.

The Margin will be determined following the Bookbuild and is expected to be in the range of 4.10%–4.30%. UBS has been appointed as Arranger and Joint Lead Manager. Morgans and National Australia Bank have also been appointed as Joint Lead Managers.

For further information, please see www.suncorpgroup.com.au/sunpf