Suncorp Bank prices A$750 million senior unsecured domestic debt transaction
Wednesday, 14 October 2015
Suncorp Bank confirmed that late yesterday it had finalised pricing for a five-year senior unsecured debt transaction of A$750 million. The transaction was upsized from A$500million following its launch on Tuesday, 13 October 2015.
The upsize in value is reflective of the robust investor interest for the transaction and Suncorp Bank’s reputation as the genuine alternative for customers, with 131 investors participating in the transaction resulting in an order book exceeding $1.2 billion.
The transaction consisted of an A$550 million floating rate tranche priced at three-month BBSW+125bps and an A$200 million fixed rate tranche priced at 125bps over semi-quarterly coupon matched asset swap.
Suncorp Bank Chief Financial Officer, David Carter, said the transaction was a successful deal for Suncorp Bank, and formed part of the Bank’s ongoing diversified onshore and offshore funding program.
“As an A+/A1 rated bank, Suncorp Bank is in a strong position to adequately diversify funding sources and offer investors a choice of both fixed and floating rate bonds,” Mr Carter said.
“In an environment of elevated market volatility, we’re pleased with the strong interest and appetite for a five-year issuance; one that combined with our other domestic and international funding deals, further lengthens our balance sheet.
“The position of the Bank’s balance sheet and proven ability to adapt to changing market conditions is a strength recently recognised by Euromoney Magazine’s Best Bank in Australia Award and was again reinforced by the support shown from offshore accounts in Asia for this transaction.”
The transaction was jointly led by Australia and New Zealand Banking Group, Commonwealth Bank of Australia, National Australia Bank, and Westpac Banking Corporation.
About Suncorp: Suncorp Group includes leading general insurance, banking, life insurance and superannuation brands in Australia and New Zealand. The Group has 14,500 employees and relationships with nine million customers. Suncorp Group Limited is a Top 20 ASX-listed company with $94 billion in assets. Suncorp Bank is Australia’s leading regional bank servicing more than one million personal, SME and agribusiness customers.