IAG has raised $350 million from institutional investors to help fund its acquisition of Wesfarmers Insurance’s underwriting business.

In December IAG announced it would raise a minimum of $200 million in debt to fund the $1.85 billion takeover. Last week it revealed it would issue $350 million in floating rate notes.

The Australian Competition and Consumer Commission will rule on the acquisition by March 27, and a decision from its New Zealand counterpart, the Commerce Commission, is due the following day.

IAG Group CFO Nick Hawkins says the response to the debt issue shows broad-based support from domestic and international investors.

The group can redeem the 26-year notes after year five or convert them to shares after year eight, and they qualify as Tier 2 capital.