Challenger to launch innovative ASX notes backed by public and private credit

12 Aug 2025

From Challenger IM

Victor Rodriguez

Challenger Investment Management (Challenger IM), part of Challenger Limited, has today announced plans to launch an innovative first-of-its kind listed unsecured investment structure, Challenger IM LiFTS 1 Notes (Challenger IM LiFTS) to be quoted on the ASX.

Challenger IM LiFTS will provide Australian investors with a fixed term investment paying monthly interest payments (deferrable in certain circumstances), which will be paid from proceeds from a managed and diversified portfolio of credit exposures.

The launch marks a significant step in Challenger’s strategy to broaden access to income-generating investments and expand its presence in the listed debt market. It also signals the start of a new issuance program, designed to meet growing demand for private credit exposure in a more accessible format.

Victor Rodriguez, Chief Executive, Funds Management, said the launch was aligned with Challenger’s long-term growth plans and commitment to investment excellence.

“This is a strategic milestone for Challenger, and we’re thrilled to launch this innovative, first-of-its-kind note structure to the Australian market. It builds on our 20 years of experience investing in public and private credit and reflects our commitment to growing our listed retail presence with institutional grade income-focused solutions,” Mr Rodriguez said. “

With the growing demand for private credit, Challenger IM LiFTS aims to provide access to this asset class via an ASX-listed fixed term debt security. We have secured cornerstone commitments of $100 million in under 24 hours from its opening demonstrating strong market appetite for this product,” he said.

Challenger IM LiFTS offers a fixed term of seven years (with a target repayment date on the sixth anniversary of issue), monthly interest payments (deferrable in certain circumstances) and daily liquidity via the ASX. The interest rate payable is 1M BBSW + 2.75% per annum and includes a first loss buffer, designed to provide additional credit enhancement to noteholders. The underlying portfolio is expected to comprise of more than 100 credit exposures across private and public markets, with limits on individual positions and industry concentrations to support diversification.

Challenger IM is one of Australia’s most experienced credit managers with more than $16 billion1 in fixed income assets under management, and a strong track record of delivering risk-adjusted returns through multiple market cycles.

IM LiFTS is being brought to market by a syndicate including lead arrangers National Australia Bank, CommSec, E&P Financial and Morgans, with joint lead managers Ord Minnett, Wilsons, Canaccord and Taylor Collison.