QBE has raised about $1.4 billion of debt to support its operations.

“This tranche of debt securities will provide cost-effective long-term funding to support our growing operations,” CEO Frank O’Halloran said in a statement.

The insurer placed $US1 billion ($937 million) of debt through notes on the US market and a further £325 million ($496 million) from UK institutional investors.

Last year QBE raised $US850 million ($797 million) in hybrid securities and $US500 million ($468 million) of lower Tier Two subordinated debt securities.

Borrowing costs last year for QBE were $US193 million ($180 million), which was up on the 2009 costs of $US171 million ($160 million).

The latest US debt raising will be at a fixed rate of 7.24% until May 2021 when it is reset to a 10-year mid-market swap rate plus a spread of 4.05%. This rate will again be reset at the same rate during May 2031.

QBE had to pay slightly more for the UK debt raising, offering a fixed rate of 7.5% until May 2021 when again it resets to a 10-year mid-market swap rate plus a spread of 4.0025%.

Both debt notes require QBE to seek Australian Prudential Regulation Authority approval to redeem the securities up to 2041 when they mature.

This latest debt has been rated BBB+ by Standard & Poor’s and Baa1 by Moody’s.