Allens has advised Challenger on the establishment of a pioneering $6 billion annuity backed note issuance program. This is a market first for an Australian based issuer.
The program allows Challenger to tap the institutional debt capital markets through the issuance of non-recourse notes by a special purpose vehicle, with cashflows servicing those notes backed by receipts on annuity products issued by Challenger to the special purpose vehicle.
The Allens team provided structuring, tax and regulatory advice on the establishment of the program and its first issuance of $750 million of fixed and variable rate three-year notes.
'This program introduces an innovative funding structure to the Australian market and provides Challenger with an additional source of long-term funding,' said co-lead partner James Darcy.
'Adapting an established international funding format to the Australian regulatory and legal environment required close collaboration across our specialist capital markets, structured finance, financial services regulation and tax teams. We're extremely pleased to have supported Challenger on this market first transaction,' said co-lead partner Jamie Taylor.
The transaction builds on Allens' experience advising on innovative funding and capital management structures across the Australian market, including Allens advises Blackstone on US$10bn financing of Firmus Group; Allens advises La Caisse on landmark $1.7bn commitment in NEXTDC hybrid securities; Allens advises lead managers on landmark hybrid bond issuance.
Allens legal team
Finance, Banking & Debt Capital
James Darcy (Partner), Jamie Taylor (Partner), Michael Gibling (Senior Associate), Ugo Ba (Senior Associate), Tom Woods (Graduate)
Funds, Super and Financial Services
Simun Soljo (Partner), Gabor Papdi (Senior Associate), Glenn Cardinio (Associate)
Tax
Ellen Thomas (Partner), George Bishop (Managing Associate), Joe Moorhead (Associate)