News: Suncorp raising $250M through preference is

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Suncorp Group Limited (ASX:SUN) has launched plans to raise around $250 million through an offer of convertible preference shares to strengthen its capital position.  

The Brisbane based insurance company will raise the funds through hybrid debt securities with the notes set to be issued for $100 apiece and trade expected to start from May 9, 2014.  

Suncorp says the initiative is part of its ongoing funding and capital management strategy and expects the proceeds will fund the capital requirements of one or more of its regulated entities.

The company has also advised investors to read the prospectus in full before deciding whether to apply to invest in the convertible preference share offer.  

Suncorp Group reported a net profit of $551 million in the first half of the 2014 financial year.