Suncorp : Bank prices A$350 million 10-year covered bond transaction

16 August 2016

Suncorp Bank today announced it has priced its covered bond transaction launched this week.

In response to investor demand Suncorp Bank has issued a 10-year, $350 million fixed rate note, priced at 10-year asset swap + 135bps.

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

Suncorp Bank CFO David Carter said demand for the covered bond was testament to the strength of Suncorp's liquidity and funding position.

"This is a great outcome for Suncorp and we are pleased with the uptake of this issue," Mr Carter said.

"Over the past 12-months we have seen wholesale funding costs increase. As part of the top 20 ASX listed Suncorp Group, we are in the fortunate position of having the flexibility to diversify our funding mix, while managing risks and optimising pricing accordingly.

"This is Suncorp's second successful covered bond transaction this year and it will contribute to supporting our balance sheet and profitable growth.

"The bonds were taken up by 28 investors, with bids totalling in excess of A$400 million." ENDS

Suncorp Group includes leading general insurance, banking, life insurance and superannuation brands in Australia and New Zealand. The Group has 13,500 employees and relationships with almost nine million customers. Suncorp Group Limited is a Top 20 ASX-listed company with $96 billion in assets. Suncorp Bank is one of Australia's leading regional banks servicing more than one million personal, SME and agribusiness customers.

Suncorp-Metway Ltd ABN 66 010 831 722, Australian Credit Licence Number 229882

GPO Box 1453 BRISBANE QLD 4001