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Suncorp increases share offer by $300 million

Suncorp has increased its convertible preference share (CPS) offer from $400 million to $700 million.

Suncorp Finance Director Chris Skilton says the increase comes as a result of strong investor demand, proving there is appetite in the market for steady but high-yielding stock.

The CPS margin has been set at 3.2% per annum.

The offer opened on Friday and provides eligible applicants with the opportunity to invest in fully paid preference shares in Suncorp capital for a minimum of $2000, or 20 shares.

Suncorp launched its original $400 million offer on May 6 after announcing it was seeking to raise funds for asset growth and debt repayments, using the proceeds to lift its tier-1 capital.

Standard and Poor’s has rated the shares ‘A-’, two levels below Suncorp’s rating.