AMP raises A$296 million in sale of notes

By Paul McBeth

Thursday 9th April 2009

AMP, the dual-listed Australian insurer and wealth manager, raised A$296 million through the sale of notes in Australia and New Zealand to repay existing debt and boost working capital.

The company raised A$202.7 million worth of Australian notes paying 7.88% and $115.5 million worth of New Zealand notes at 8.83%.

The 10-year notes have a five-year call option. The Australian notes begin trading today.

The company will use the money raised to meet ongoing funding requirements and refinance subordinated debt, chief executive Craig Dunn said in a statement last month.

The notes are unsecured subordinated debt obligations, ranking behind all other creditor claims, and were provisionally rated A- by Standard & Poor's and A3 by Moody's.

Shares in Australia's largest provider of pension plans last traded at $6.30.

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