-- Challenger today announced the first issuance under a new $6 billion Challenger AnnuityBacked Notes (CABN) program that will support its annuity book growth and provide further diversification.
The inaugural issuance is of $750 million AUD-denominated wholesale 3-year notes (the Notes), split between $500 million floating rate Notes and $250 million fixed rate Notes. The interest rate payable to noteholders is 3 months BBSW plus a margin of 1.12% per annum on the floating rate tranche and 5.57% per annum on the fixed rate tranche. The Notes have been assigned an A+ long-term issue rating by S&P.
Demand for income solutions continues to grow, reflected in the transaction being significantly oversubscribed with a final order book in excess of $1.75 billion.
Representing the first-of-its-kind solution in the Australian market, the CABN program establishes a new market channel for Challenger as it enters its next phase of growth. It follows the development and ASX listing of unique-to-market LiFTS Notes in August 2025 and builds on Challenger’s experience in providing innovative solutions to institutional investors.
Challenger Managing Director and Chief Executive Officer Nick Hamilton commented:
“The launch of our annuity-backed notes program is a significant milestone for our business as we enter our next era of growth. The notes support the growth of our annuity book, expand our customer channels, and add further diversification to our range of income solutions.
“We are delighted with the strong interest received from a range of quality institutional investors in the Notes, which are the first of their kind in the Australian market.
“CABN provides us with a flexible platform that we can continue to evolve, including across different tenors, enabling us to support asset origination and deepen our funding capabilities over time.”
The Notes are brought to market by CABN program arranger Jarden and Joint Lead Managers Jarden/Nomura, NAB, UBS and Westpac.
ENDS
For more information contact:
Mark Roberts
General Manager, Corporate Affairs and Sustainability
P: 0466 328 581
About Challenger
Challenger Limited (Challenger) is an investment management firm focused on providing customers with financial security for a better retirement. Challenger operates a fiduciary Funds Management division and an APRA-regulated Life division. Challenger Life Company Limited (Challenger Life) is Australia's largest provider of annuities.
Release ID: 89196923
Google
RSS