The Suncorp Group Ltd (ASX: SUN) share price is slightly higher on Tuesday following an announcement from the banking and insurance giant.
At the time of writing, Suncorp shares are up 0.19% to $12.855. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.15% to 7,517 points.
What did Suncorp update the ASX with?
According to the release, Suncorp advised it has opened its capital notes 4 offer to syndicate brokers and institutional investors. The former is made up of retail or high net worth clients.
The company has allocated $375 million in firm commitments with a margin set at 2.9% per annum. However, the total amount to be raised will depend on the amount and value of applications received.
The issue price is set at $100 per capital note 4, with a minimum investment of $5,000.
Furthermore, the distribution rate — (bank bill rate + margin) x (tax rate) — will be calculated on a quarterly basis.
Unless exchanged earlier, the notes will convert into a variable number of Suncorp ordinary shares on 17 December 2030.
The capital notes 4 are being issued as part of Suncorp’s ongoing funding and capital management strategy. Proceeds are expected to be allocated towards general corporate and funding purposes.
The closing date for the capital 4 notes is on 20 September 2021. Settlement is due to take place on 22 September with the notes trading on 24 September.
About the Suncorp share price
Over the last 12 months, Suncorp shares have gained 40% reflecting a strong recovery since COVID-19.
The company’s share price is up more than 30% year-to-date. This is an impressive rebound from when Suncorp shares were trading for as little as $8 a share in November 2020.
Today, the share price is nearing its 52-week high of $13.26 achieved in mid-August.
In valuation terms, Suncorp commands a market capitalisation of roughly $16.5 billion, with 1.2 billion shares on issue.
The post Why the Suncorp (ASX:SUN) share price is edging higher today appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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