Bank of Queensland Enters Strategic Capital Partnership With Challenger
MT Newswires Live
Apr 07
Bank of Queensland (ASX:BOQ) entered a strategic capital partnership with Challenger (ASX:CGF), including a AU$3.7 billion whole-of-loan sale and a forward flow arrangement for equipment finance assets, according to a Tuesday Australian bourse filing.
Around AU$300 million in capital is expected to be returned to shareholders, subject to market conditions, board and regulatory approvals, through an on-market share buyback and a fully franked special dividend.
The forward flow agreement has an initial 12-month term, which is extendable by agreement between the parties. The agreement is also subject to Challenger and its financiers' discretion as to funding.
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