Australia's Suncorp to sell A$250 million hybrid issue

Sydney

AUSTRALIAN insurer Suncorp Group plans to raise around A$250 million (S$438 million) of hybrid securities to strengthen its capital base, it said on Monday, with the bank hoping to tap piles of cash looking for a higher-yielding home.

The offer consists of additional tier 1 capital, a form of capital required by financial regulators to ensure banks have sufficient reserves to avoid the need for a taxpayer-funded bailout in the event of a financial crisis.