Challenger raises $300m from institutions with new annuity-backed notes

Challenger has completed a $300 million raising of 5-year Challenger Annuity-Backed Notes, its second raise under the $6 billion CABN program, taking total issuance to $1.05 billion in under four months.

Sydney, Australia, October 29, 2026 --

• Second raising under the $6bn Challenger Annuity-Backed Notes (CABN) program, after $750m raising in July
• 5-year notes, backed by Challenger annuities

The AUD-denominated wholesale 5-year notes (the Notes) are split between $150 million floating rate Notes and $150 million fixed rate Notes. The interest rate payable to noteholders is 3 months BBSW plus a margin of 1.40% per annum on the floating rate tranche and 6.383% per annum on the fixed rate tranche. The Notes have been assigned an A+ long-term issue rating by S&P.

The issuance builds on the inaugural $750 million CABN raising in July, taking total issuance under the CABN program to $1.05 billion in less than four months. The move to a 5-year tenor is part of planned flexibility of the CABN program.

The CABN are backed by Challenger annuities, and issued as a fixed income investment, providing institutional investors with access to the annuity-like investments.

Challenger Managing Director and Chief Executive Officer Nick Hamilton commented:

"The CABN program has received strong interest since we announced it earlier this year. This 5-year CABN issuance takes Challenger to $1.05 billion issued in a 4-month period, which speaks to the strength of Challenger as an issuer and the notes’ potential.

"The team is seeing attractive opportunities across credit markets given recent market dislocation, and the timing of this CABN issuance allows us to capitalise on these."

The Notes are brought to market by CABN program arranger Jarden and Joint Lead Managers Jarden/Nomura, NAB, UBS and Westpac.

For more information contact: Felicity Goodwin, Challenger Corporate Affairs, P: 0461 579 782, E: [email protected]

About Challenger

Established in 1985, Challenger is Australia’s leading retirement income business with a purpose to provide customers with financial security for a better retirement. We do this by helping Australians convert their accumulated savings into reliable and sustainable retirement income. At the same time, we provide income solutions for institutional investors through our leading credit origination capabilities, providing access to high-quality investment opportunities across public and private markets. Challenger runs an APRA-regulated life company that provides income solutions to customers, and we are listed on the Australian Securities Exchange (ASX).

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