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MyState strengthens capital with $25m debt issue

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.

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“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.

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