SUNCORP GROUP LIMITED — Capital/Financing Update 2012

Sep 24, 2012

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ASX announcement

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25 Se p tember 20 1 2

SUNCORP LAUNCHES CPS2 OFFER

Suncorp G roup Limit e d (“Suncorp”) today a n nounced i t s intention to raise ap p roximatel y A$350 million with th e ability to r a ise more o r less, through an off e r of conver t ible prefer e nce share s (“CPS2”) w hich are e x pected to b e quoted o n the Aust r alian Securities Exch a nge (“ASX”).

The proce e ds from the Offer will be used fo r general c o rporate, funding and c apital management purposes including to maintain appropriate l evels of gearing follo w ing the pr o posed red e mption of £253 milli o n (A$575 m illion) Tier 2 Subordi n ated Calla b le Notes issued by S u ncorp-Met w ay Limite d and redee m able on 2 3 October 2 012.

John Nes b itt, Suncor p Group C F O said, “T h is offer will help Sunc o rp maintai n its strong capital position a n d further e n hance the quality an d mix of its r egulatory c apital.”

CPS2 will q ualify as R esidual Ti e r 1 Capital for Austral i an Pruden t ial Regulat i on Authori t y (“APRA”) purposes u nder its current capit a l prudential standards and will be fully eligib l e for inclusion as Additional Tier 1 Capital under APRA’s Bas e l III capita l adequacy framework from 1 January 2013 until 17 D e cember 2017[1] .

Full detail s of this inv e stment op p ortunity a n d the CPS 2 Terms ar e set out in the Prospectus lodge d with the A u stralian S e curities an d Investme n ts Commi s sion (“ASI C ”) and AS X today. The Prospectus is av a ilable to A u stralian in v estors at w ww.sunco r pgroup.co m .au or by c alling the Suncorp C PS2 Offer I nformation Line belo w . A replac e ment Pros p ectus, con t aining the Margin an d Applicatio n Forms, is expected t o be made a vailable o n 3 Octobe r 2012.

UBS has b een appoi n ted as Str u cturing Ad v iser and J o int Lead Manager. ANZ Secu r ities, Nati o nal Austral i a Bank, R B S Morgan s and West p ac Institutional Bank h ave also been app o inted as J o int Lead M a nagers.

Investors s hould read the Prosp e ctus in full before deciding whet h er to inves t in CPS2. A pplication s may only b e made using the Ap p lication Fo r m attache d to or accompanying t he replace m ent Prospectu s .

Ends

For more i n formation contact:

Securityholders and the S u ncorp CP S 2 Offer Inf o rmation Li n e: general public : 1300 8 82 012 (withi n Australia) +61 2 8280 7450 (outsi d e Australi a ) M o nday to Fr i day—8:00 a m to 7:30 p m (Sydne y time). Media: Mi c helle Barr y , 0402 89 2 789 Analysts/Investors: M a rk Ley, 04 1 1 139 134 Ni c ole McGin n , 0437 79 2 504

1 Subject to o btaining ordi n ary sharehol d er approval b y 31 March 2 013 for certain amendmen t s to the Suncorp Constituti o n to enable th e CPS2 Term s to include A P RA required non-viability r e lated provisi o ns, as descr i bed in the Pr o spectus. Pending sha r eholder appr o val, transitio n al arrangem e nts would apply during the March quart e r. If sharehol d er approval i s not obtained by 31 March 2 013, the CP S 2 will remai n on issue but will not be Basel III compli a nt and would only qualify as regulatory c a pital in accor d ance with A P RA’s standar d transitional t reatment. Pl e ase read the Prospectus f o r further information.

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Suncorp Grou p Limited - AB N 66 145 290 1 2 4 - GPO Box 1 4 53, Brisbane Q LD 4001 www.suncorp g roup.com.au

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More information about the Offer

The Offer c omprises:

• an Insti t utional Off e r to certai n Institution a l Investor s ;

• a Brok e r Firm Offer to Australian residen t retail and high net w o rth clients o f Syndicate Brokers;

• a Secu r ityholder O ffer to Eligi b le Securit y holders; a n d  a General Offer to members o f the gene r al public w h o are resi d ent in Aus t ralia.

Key features of CPS2

 CPS2 a re fully pai d , unsecur e d preferen c e shares t o be issued by Suncor p .

• Suncor p may elec t , at its opti o n, to Exch a nge all or s ome CPS 2 on the O p tional Exc h ange Date (17 De c ember 2017). CPS2 w ill Mandat o rily Conve r t into ordin a ry shares o f Suncorp on 17 Dec e mber 201 9 , subject t o certain conditions be i ng satisfie d , unless th e y are Exc h anged earlier.

• Holder s of CPS2 w ill receive d iscretiona r y, floating r ate, non-c u mulative a n d preferre d dividend s , which a re schedul e d to be pa i d quarterly (subject to certain Di v idend Pay m ent Tests). Dividend s are expected to b e fully frank e d.[2]

• The Di v idend Rat e will be cal c ulated on a quarterly b asis as th e sum of th e 90 day B a nk Bill Rat e plus th e Margin, a d justed for f ranking cr e dits.

• The M a rgin will be determine d under the Bookbuild, and is exp e cted to be in the ran g e of 4.65% and 4.85% per an n um.

• The mi n imum inve s tment in C PS2 is $5, 0 00 (50 CPS2).

Indicative timetable

Indicative timetable
Key dates for the Of fer	Date
Record da te for deter mining Elig ible Securit yholders	17S eptember2 012
Lodgemen t of this Pro spectusw ith ASIC	25S eptember2 012
Bookbuild	2 Oc tober 2012
Announce ment of the Margin	3 Oc tober 2012
Lodgemen t of the rep lacementp rospectusw ith ASIC	3 Oc tober 2012
OpeningD ate	3 Oc tober 2012

2 A CPS2 H o lder’s ability to use frankin g credits will depend on the i r individual tax position.

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Suncorp Grou p Limited - AB N 66 145 290 1 2 4 - GPO Box 1 4 53, Brisbane Q LD 4001 www.suncorp g roup.com.au

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Key dates for the Of fer			Date
Closing Da te for theS ecurityhold er Offer an	d General	Offer	30O ctober 201 2
Closing Da te for theB roker Firm Offer			5 No vember 20 12
Issue Date			6 No vember 20 12
CPS2 com mence trad ing on ASX (deferred	settlement	basis)	7 No vember 20 12
Holding St atementsd espatched by			8 No vember 20 12
CPS2 com mence trad ing on ASX (normals ettlementb asis)			9 No vember 20 12
Key dates for CPS2			Date
SuncorpA GM			25O ctober 201 2
First quart erly Dividen d Paymen t Date			17D ecember 2 012
OptionalE xchangeD ate			17D ecember 2 017
Scheduled Mandatory Conversio n Date			17D ecember 2 019

Dates may change These dat e s are indi c ative only a nd may ch a nge witho u t notice.

Suncorp and the Join t Lead Managers may agree to v a ry the timetable, inclu d ing exten d ing any Closing D a te, closing the Offer early withou t notice or a ccepting l a te Applicat i ons, whet h er generall y or in parti c ular cases, or withdra w ing the Of f er at any time before C PS2 are i s sued, at t h eir discretion.

Definitions

Unless ot h erwise defined, capitalised word s used in th i s announc e ment hav e the meanings given t o them in th e Prospect u s.

Disclaimer

This anno u ncement d oes not co n stitute an o ffer of any securities ( including t h e CPS2) f o r sale or issue. No a ction has b een taken to register o r qualify C PS2 or the Offer or to otherwise p ermit a public offering of CP S 2 outside A ustralia. In particular, this annou n cement d o es not con s titute an offer of se c urities for s ale in the U nited Stat e s. Neither the CPS2 n or the Ord i nary Shar e s have be e n or will be r e gistered under the U S Securitie s Act or the securities laws of any state of th e United States, an d they may not be offered or sold in the Unit e d States. T he CPS2 a re being o f fered and sold in the Offer solel y outside t h e United S t ates pursuant to Reg u lation S u n der the US Securities Act.

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Suncorp Grou p Limited - AB N 66 145 290 1 2 4 - GPO Box 1 4 53, Brisbane Q LD 4001 www.suncorp g roup.com.au