AMP seeks $200m from investors Financial services company AMP is seeking to boost its balance sheet via a $200 million subordinated notes issue. The announcement comes as risk appetite improves and after AMP warned its fourth-quarter earnings could take a hit of up to $65 million due to further troubles at its income protection business. AMP said this morning a substantial part of the proceeds was "expected to be used to fund Tier 2 Capital of one or more regulated entities within the AMP Group." The remaining proceeds from the offer will be used for general corporate, funding and capital management purposes. The AMP Notes 2 offer is expected to open on 14 November and to start trading on the Australian Securities Exchange on 19 December. More or less than $200 million might be raised from retail and institutional investors. The interest rate will be equal to the market rate plus a margin which is expected to be between 2.65 per cent to 2.85 per cent, AMP said. AMP said last month that a review of its life insurance book would prompt it to tip $15 million into its income protection book. A change in payout assumptions would also result in a capitalised loss in the range of $40 million to $50 million in the fourth quarter. This was expected to reduce AMP's operating profit by the same amount, the company said. In total, these two adjustments are expected to result in a $55 million to $65 million reduction in AMP's operating result for the [fourth quarter] of 2013. It also said it would have to wait until the fourth quarter to assess what effect the moves could have on dividends. The company substantially bulked up its income protection business years ago with the $4.1 billion purchase of AXA Asia Pacific's Australian operations. Income protection products, which guarantee a portion of a policyholder's salary for a period of time if they are unable to work, have been causing headaches for life insurers as claims rise in line with job losses among white-collar workers. A slowing economy has also prompted some people to opt out of life insurance products such as death and disability cover.