Wealth manager Australian fund manager AMP Ltd (ASX: AMP) said a unit has launched a A$600 million floating rate subordinated exchangeable note to partially fund its takeover of AXA Asia Pacific Holdings Ltd's Australia and New Zealand businesses.

The floating rate subordinated exchangeable notes would have a maturity date of March 26, 2021, unless redeemed or exchanged earlier, the Sydney-based company said in a statement on Tuesday.

The notes will be issued at 250 basis points over the 3 month bank bill swap rate. French insurer AXA SA, which will take up the Asian business of AXA Asia Pacific, has agreed that it will buy the unsubscribed notes.

The notes would qualify as lower Tier 2 capital for the Australian Prudential Regulation Authority.

UBS is arranging the deal.

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