-- Challenger Investment Management (Challenger IM), part of Challenger Limited, has today announced plans to launch an innovative first-of-its kind listed unsecured investment structure, Challenger IM LiFTS 1 Notes (Challenger IM LiFTS) to be quoted on the ASX.
Challenger IM LiFTS will provide Australian investors with a fixed term investment paying monthly interest payments (deferrable in certain circumstances), which will be paid from proceeds from a managed and diversified portfolio of credit exposures.
The launch marks a significant step in Challenger’s strategy to broaden access to income-generating investments and expand its presence in the listed debt market. It also signals the start of a new issuance program, designed to meet growing demand for private credit exposure in a more accessible format.
Victor Rodriguez, Chief Executive, Funds Management, said the launch was aligned with Challenger’s long-term growth plans and commitment to investment excellence.
“This is a strategic milestone for Challenger, and we’re thrilled to launch this innovative, first-of-its-kind note structure to the Australian market. It builds on our 20 years of experience investing in public and private credit and reflects our commitment to growing our listed retail presence with institutional grade income-focused solutions,” Mr Rodriguez said.
“With the growing demand for private credit, Challenger IM LiFTS aims to provide access to this asset class via an ASX-listed fixed term debt security. We have secured cornerstone commitments of $100 million in under 24 hours from its opening demonstrating strong market appetite for this product,” he said.
Challenger IM LiFTS offers a fixed term of seven years (with a target repayment date on the sixth anniversary of issue), monthly interest payments (deferrable in certain circumstances) and daily liquidity via the ASX. The interest rate payable is 1M BBSW + 2.75% per annum and includes a first loss buffer, designed to provide additional credit enhancement to noteholders. The underlying portfolio is expected to comprise of more than 100 credit exposures across private and public markets, with limits on individual positions and industry concentrations to support diversification.
Challenger IM is one of Australia’s most experienced credit managers with more than $16 billion1 in fixed income assets under management, and a strong track record of delivering risk-adjusted returns through multiple market cycles.
Challenger IM LiFTS is being brought to market by a syndicate including lead arrangers National Australia Bank, CommSec, E&P Financial and Morgans, with joint lead managers Ord Minnett, Wilsons, Canaccord and Taylor Collison.
ENDS
For more information contact: Felicity Goodwin
Head of Public Affairs, Challenger P: 0461 579 782
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.
Disclaimer:
Challenger IM Capital Limited (ACN 687 738 263) (Issuer) is the issuer of the unsecured, deferrable, redeemable, floating rate notes known as the Challenger IM LiFTS 1 Notes (Notes) which are intended to be quoted on the ASX. The Notes are redeemable by, and the interest is deferrable by, the Issuer. Unless otherwise specified, any information contained in this material is current as at the date of publication and has been prepared by the Issuer.
The offer of Notes will be made by a Prospectus which is available, along with a target market determination (TMD), at www.fidante.com/challenger-im-lifts. It is important for you to consider the prospectus and whether you are in the target market in the TMD in deciding whether to invest. You will need to complete the application form accompanying the prospectus. No cooling off rights apply to an investment in the Notes.
The Issuer has appointed Fidante Partners Services Limited (ACN 119 605 373) (FPSL) as authorised intermediary to make offers to arrange for the issue of Notes under the Prospectus, pursuant to section 911A(2)(b) of the Corporations Act 2001 (Cth). FPSL is the holder of Australian Financial Services Licence (AFSL) number 320505. Challenger Investment Partners Limited (also referred to as "Challenger Investment Management" or "CIM") (ACN 092 382 842, AFSL 234 678) provides investment management and other services to the Issuer.
The Issuer is not licensed to provide financial product advice in relation to the Notes. The information provided is intended to be general in nature only. This material has been prepared without taking into account any person's objectives, financial situation or needs. Any person receiving the information in this material should consider the appropriateness of the information, in light of their own objectives, financial situation or needs before acting.
Past performance is not a reliable indicator of future performance. Investments in the Notes are subject to investment risk, including possible delays in payment and loss of interest or principal invested. The Notes and their performance are not guaranteed by any member of the Challenger Group or any other person. The Notes are not bank deposits.
The material has not been independently verified. No reliance may be placed for any purpose on the material or its accuracy, fairness, correctness or completeness. To the fullest extent permitted by law, the Issuer, CIM, FSPL or any other member of the Challenger Group and their respective associates and employees shall have no liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this material or otherwise in connection with the information.
Release ID: 89168424
Google
RSS