Challenger sells US$400 mln 30-year sub debt issue

SYDNEY, Oct 26 (Reuters) - Australia's Challenger Financial
Services Group Ltd (CGF.AX: Quote, Profile, Research, Stock Buzz) said on Friday it has closed a
US$400 million 30-year subordinated issue in the U.S. private
placement market.

It was issued by Challenger Life No.2.

The notes cannot be called for 10 years and are expected to
be rated BBB+ by S&P, two notches below Challenger's financial
strength rating.