Insurance Australia Group sets rate

Insurance Australia Group said yesterday that the initial margin for its offer of reset exchangeable securities (RES) had been set.

The floating interest rate is based on the 90-day bank bill rate plus the initial margin, adjusted for franking (imputation).

That initial margin has been set at 1.20 per cent per annum.

Based on the minimum bank bill rate of 5.50 per cent per annum, IAG said the interest rate for the first interest payment would be at least 4.69 per cent per annum, fully franked.