Suncorp Group will raise about $350 million by issuing new preference shares.

The insurance and banking group said the sale proceeds would strengthen its capital position and be used for general corporate and funding purposes.

“This offer will help Suncorp maintain its strong capital position and further enhance the quality and mix of its regulatory capital,” chief financial officer Joh Nesbitt said in a statement on Tuesday.

Preference shares often provide a dividend higher than that paid to normal shareholders, plus their dividends are paid before normal share distributions.

The preference shares offer – available to institutional investors, current shareholders and the general public – is expected to open on October 3.