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.
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.