Tower issue raises $81.7m

Fund manager and insurer Tower has raised $81.7 million in a potential $100 million bond issue which opened more than a month ago amid rising competition from other issuers.

The company's five-year bond offer, with a fixed interest rate of 8.5 per cent a year paid quarterly, had raised its minimum target of $80 million shortly after opening on February 16.

An extra $20 million was open for oversubscriptions.