QBE pitches global fixed income funds for hybrid

QBE Insurance Group was in front of fixed income managers for the fourth leg of its "comprehensive capital plan" on Monday.

It's fixed income investors' turn to hear from QBE, run by Pat Regan. Renee Nowytarger

The company was booked to meet Asian, European and North American investors starting on Monday afternoon, Sydney time, ahead of its slated $US400 million-odd hybrid raising.

JPMorgan, Citi and HSBC were arranging the meetings and will oversee the offer, which is expected to launch later this week.

QBE flagged the hybrid on April 14, when it unveiled its capital restoration plan involving a discounted equity raising, derisking its investment portfolio, increasing reinsurance on parts of its book and the hybrid.

Having already achieved the first three legs, QBE's brokers told funds the hybrid would be structured as US dollar 144A regulated perpetual non-call five year additional tier one (AT1) capital notes and were expected to be rated Baa2 by Moody’s and BBB- by S&P.

QBE's investor meetings and likely raising comes only one week after American financial services company Charles Schwab re-opened the AT1 market with a $US2.5 billion deal that priced at a 5.375 per cent yield via six brokers.