Health insurer and fund manager Australian Unity yesterday launched a retail debt issue. The group is seeking A$80 million, through the issue of five-year unsecured notes that will be listed on the Australian Securities Exchange.Australian Unity joins Commonwealth Bank and Bendigo & Adelaide Bank in tapping the developing retail bond market this year.Australia Ratings has assigned the notes a BBB+ long-term credit rating. Australian Ratings is the only ratings agency with a licence to rate retail investment products and Australian Unity Notes is its first retail bond rating.Australian Unity's chief financial officer, Tony Connon, said pricing of the floating rate securities would be set after an institutional book-build. Connon said he expected the yield would be around 350 basis points over the bank bill rate.He said the group would use the funds to retire $50 million of existing debt and put the balance towards business development.The offer is expected to open on March 11, closing on April 5 for member and employee applicants, on April 7 for general applicants, and on April 8 for broker firm applicants.The retail corporate debt market has picked up since the middle of last year, when the Australian Investments and Securities Commission gave issuers relief from full prospectus requirements. The relief has meant that issues can be dealt with more quickly and more cheaply, and follow-on issues will not require a new product disclosure statement.However, Australian Unity prepared its issue under the old rules. As a mutual it is not able to apply for the relief.