IAG is raising $350 million through the issue of convertible preference shares.

The group plans to amend the terms of its reset preference shares, which have a reset date of June 15 this year, so Australian holders can reinvest them in the tier 1 convertible offering.

The convertible preference shares will be listed on the Australian Securities Exchange and IAG intends to buy back the residual non-participating reset preference shares on June 15.