Suncorp Bank prices A$950 million five year covered bond transaction

23 October 2014

Suncorp Bank today announced it has priced its covered bond transaction launched this morning. In response to significant investor demand Suncorp Bank has issued a five -year A$250 million fixed rate tranche and A$700 million floating rate tranche priced at mid swaps + 70bps.

ANZ, Citi, Deutsche Bank and UBS Investment Bank were Joint Lead Managers for the transaction.

Suncorp Bank Treasurer Tim Hughes said the robust investor demand for the covered bond was testament to the strength of Suncorp Bank’s liquidity and funding position.

“We’re pleased with the strong domestic uptake of this issue as well as the solid support from offshore investors who were allocated 20 per cent of the bonds. Combined with our other transactions completed in 2014, this trade continues to lengthen our balance sheet and supports profitable growth for Suncorp Bank,” Mr Hughes said.

“The bonds were taken up by 45 investors, with firm bids totalling more than A$1.1 billion,” he said.

“This is our fourth covered bond transaction, following three successful deals in 2012 and forms an important part of Suncorp Bank’s funding strategy.

“As Australia’s leading regional bank and part of the top 15 ASX listed Suncorp Group, we’re in a unique position with our A+ credit rating providing us access to a diverse range of funding instruments at competitive prices, which enhances our funding mix and ultimately the security of our entire portfolio.”



Media Enquiries: Amy McDonald 0403 058 462.

About Suncorp:

Suncorp Group includes leading general insurance, banking, life insurance, superannuation and investment brands in Australia and New Zealand. The Group has around 14,500 employees and relationships with nine million customers. It is a Top 15 ASX listed company with over $94 billion in assets. Today Suncorp is Australia's leading regional bank, largest domestic general insurance group, and second largest in New Zealand and has representation in 450 offices, branches and agencies throughout Australia and New Zealand.