Suncorp has proved that investors are still willing to put money into high-yielding issues that carry low levels of risk. Originally planning to raise $400 million through a convertible preference share issue, this had been increased to $700 million by last night. Finance director Chris Skelton said that applications totalling well over $1 billion had been received but that the issue was closed now except for their existing retail investors. The preference shares have a yield calculated as the 90-day bank bill rate plus a margin of 3.2 per cent which, at a bank bill rate of 7.8 per cent last night, equates to a yield of 11 per cent.
