The Challenger Ltd (ASX: CGF) share price is edging higher today.
This comes after the annuities company provided a market announcement on a subordinated notes offer.
At the time of writing, Challenger shares are up 1.88% to $6.245 apiece.
In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.9% to 6,790 points following a strong rally on Wall Street overnight.
Let's take a closer look at what the company updated the ASX with today.
Challenger launches subordinated notes offer
In today's statement, Challenger advised it has launched an offer of unsecured subordinated notes to institutional and other wholesale investors.
Each note is valued at $10,000, with a minimum subscription amount of $50,000 per application. However, it's possible to apply for the notes that are not bound by the minimum subscription amount, provided it does not require disclosure.
The pricing of the notes will be decided by a bookbuild process which is expected to take place today.
Challenger said that the net proceeds from the notes will be used for general corporate, funding, and capital management purposes.
The notes have a term of 15 years, with the maturity date falling in September 2037.
In case you were wondering how to get in on the action, the subordinated notes are not being offered to retail investors.
About the Challenger share price
Throughout the year, the Challenger share price has experienced strong volatility due to the uncertain economic outlook. It's down more than 4% year to date.
On the other hand, the S&P/ASX 200 Financials Index (ASX: XFJ) is down 7.2% in 2022 so far.
Based on today's price, Challenger commands a market capitalisation of approximately $4.27 billion.
