Promina is offering up to $250 million of Promina reset preference shares (RPS) with the ability to accept over-subscriptions of up to A$50 million. The offer, announced this morning, is being made to Australian institutional and retail investors and will qualify as “tier 1” capital for the group.

CFO Harold Bentley says the offer is part of Promina’s long-term capital management program “and is the first step towards making our capital structure more efficient by introducing some gearing into our balance sheet. At the same time, this step supports organic growth.”

The decision to launch an RPS offer came after developing Promina’s three-year capital management plan, “and following careful consideration of current market conditions and factors. Overall, Promina’s long-term goal is to reach a gearing level of 25% over the next few years,” Mr Bentley said.