Australian Unity is looking to raise a further $220 million through its Australian Unity Mutual Capital Instruments (MCIs), with the ability to raise more or less, to fund its expansion.

As we reported in December last year, Australian Unity became the first issuer of MCIs, a financial instrument that allows mutual funds to raise capital without compromising their mutual status, in the country.

Australian Unity CEO – Independent & Assisted Living, Kevin McCoy, told the SATURDAY magazine in June that Australian Unity had to go through a Senate inquiry and work with Treasury over many years to issue the MCIs.

Part of this capital was used to fund its $65 million purchase of retirement village and aged care owner-operator Greengate Partnerships, created by Andrew Sweeney, Howard Smith and Matthew Fisher in 2004, which was finalised in July.

Australian Unity told the ASX on Friday that strong demand from institutional investors and syndicate brokers led to decide to raise further funds.

It initially sought to raise $160 million as part of its ongoing capital management strategy with the money to be used to support growth opportunities and help repay debt.