QBE and BOQ seek convertible capital 05 July 2010 4:42PM Philip Bayley Bank of Queensland and QBE Insurance Group both announced lower Tier II qualifying, convertible note issues to the ASX on the last day of the financial year.BoQ advised that it had privately placed A$150 million of convertible notes. The notes will mature in ten years, if not converted into BoQ ordinary shares in the meantime, and will pay a coupon of 400 basis points over the 30-day bank bill rate.Subject to approval from APRA, BoQ can seek the conversion of A$60 million of the notes from July 2011, A$45 million of notes from December 2011 and A$45 million of notes from June 2012. Conversion will be into a number of BoQ shares of equivalent value, after allowing for a 2.5 per cent conversion discount.QBE advised that it had sold US$500 million of ten-year convertible notes in the United States. The notes will pay a coupon of three-month Libor plus 250 bps, with conversion being at the option of either the holder or QBE, subject to APRA approval, after twelve months. The proceeds from the issue will be used to redeem euro bonds falling due in August, with the remainder to be used for general corporate purposes.