MyState issues $10m of subordinated notes

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”.

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]