MyState Ltd has priced an issue of capital notes, its inaugural issue of additional tier 1 capital, raising A$65 million.
The floating rate notes will pay a margin of 550 basis points over the three-month bank bill swap rate (currently 2.3 per cent). Distributions are discretionary and non-cumulative.
The first call date is in five years and mandatory conversion is in seven and a half years.
MyState did not offer the notes to retail investors and did not issue under a prospectus.
The group has previously issued subordinated debt, which is eligible as tier 2 regulatory capital. It raised $25 million in July 2020 and $25 million in November last year.
MyState chief executive Brett Morgan said in a statement that the issue of capital notes brings MyState into line with its regional bank peers.