Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

MyState issues $10m of subordinated notes

A Tasmanian lender has priced a $10-million debt issue in a transaction that will allow the group to “build greater diversity” into its capital base.

MyState Bank Limited announced on Wednesday that it has successfully priced $10 million of 10-year, non-call five-year, Tier 2 subordinated notes under its Medium Term Note (MTN) program.

According to the bank, under the APRA capital adequacy framework, the notes will “qualify as Tier 2 capital”.

Advertisement
Advertisement

The notes will be for a term of 10 years (maturing 28 September 2026), and will pay interest quarterly at a floating rate equal to the three-month bank bill swap reference rate (BBSW) plus a margin of 4.25 per cent per annum.

“This successful transaction allows the group to build greater diversity into our capital base following our inaugural issue in August 2015,” managing director Melos Sulicich said.

“Importantly, this transaction priced well within the previous issue price, reflecting strong support from investors.”

The bank priced $25 million of 10-year Tier 2 subordinated notes when its MTN program was established in August last year.

[Related: MyState inks loan referral deal with DirectMoney]

MyState issues $10m of subordinated notes
mortgagebusiness

Latest News

The corporate regulator has proposed to use its product intervention powers to address “significant detriment” caused by continuing cre...

The federal government’s fund manager has paused investment rounds on the $2-billion Australian Business Securitisation Fund in light of c...

The banking sector’s commitment to extend loan repayment holidays for distressed borrowers could prolong the deterioration in credit quali...

FROM THE WEB

podcast

LATEST PODCAST: Support for current broker remuneration model

Do you expect COVID-19 to reduce or increase your business flows?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.