Suncorp finalises $750m debt issue

Suncorp Bank has moved to strengthen its balance sheet with a five-year senior unsecured debt transaction worth $750 million.

The $750 million debt issuance consisted of a $600 million floating rate and $150 million worth of fixed-rate bonds with a five-year maturity, according to a statement by the regional bank.

The transaction was jointly led by CBA, National Australia Bank, RBC Capital Markets and UBS Investment Bank.

Suncorp Bank chief financial officer David Carter said it was the bank’s first domestic senior unsecured term transaction into the Australian market for 2016.

“Suncorp Bank, supported by its A-plus credit rating, is in a strong position to access a diverse range of funding sources to support sustainable, profitable growth for the bank,” he said.

“We’re really pleased to have attracted such strong investor interest for this issue, both domestically and offshore.”

Mr Carter said that in an environment of heightened market volatility, Suncorp is also appreciative of the solid appetite for a five-year issuance.

“In total, 73 investors participated in the transaction with an order book exceeding $900 million, including 16 investors in the fixed-rate tranche with good support, particularly from the offshore market on this front.”

[Related: Suncorp posts 15% profit growth]

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