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

MyState strengthens capital with $25m debt issue

MyState Bank has successfully priced a debt issue that it says will strengthen the bank’s capital reserves and allow it to maintain strong loan growth.

The bank has priced $25 million of 10-year Tier 2 subordinated notes under its newly-established Medium Term Note program (MTN), which will qualify as Tier 2 capital under APRA’s capital adequacy framework.

MyState said the issue was “well supported and over-subscribed” by a broad base of institutional and private wealth investors, and the notes will pay quarterly interest at a floating rate equal to the three-month bank bill swap reference rate, plus a margin of five per cent per annum.

Advertisement
Advertisement

Melos Sulicich, managing director of MyState Limited, said the successful launch of the transaction in a challenging market is a positive step for the group as it looks to build greater diversity in its capital base.

“The issue supports our continued organic growth and allows the bank to maintain strong loan growth momentum into the future,” he said.

“The establishment of the MTN program is a milestone achievement, and this inaugural issue strengthens the group’s capital and funding options.

“Specifically, this issue allows the group to utilise a cost-effective capital structure to support continued returns to shareholders.”

Meanwhile, ANZ has announced it has raised $2.5 billion in new equity capital through the placement of approximately 80.8 million of the bank’s ordinary shares at the price of $30.95 per share.

ANZ announced last week that the share placement was part of a $3 billion raise to meet the new bank requirements introduced by APRA.

MyState strengthens capital with $25m debt issue
mortgagebusiness

Latest News

The federal government has committed an additional $130 billion in support to protect jobs threatened by the economic fallout from the cor...

New government-led interventions in the housing market in response to the coronavirus outbreak are set to further hinder transaction activit...

The number of owners withdrawing their property from auction soared to 40 per cent last week, following the introduction of a ban on auction...

FROM THE WEB
podcast

LATEST PODCAST: Further relief for SMEs and borrowers

Do you think Australia will move to quantitative easing this year?

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Mortgage Business.

Read more

Website Notifications

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