Suncorp Group Limited (ASX: SUN) is exploring a new Capital Notes offering to enhance its funding and capital management. This initiative, may also allow reinvestments for Suncorp Capital Notes 2 holders from 2017. The launch is dependent on market conditions and necessary approvals.
Over the last three years, Suncorp’s CET-1 ratios have been solid, with 10.39% in FY23, 9.08% in FY22, and 10.07% in FY21.
The anticipated acquisition of Suncorp Group by ANZ, which awaits the treasurer’s approval, is poised to enhance Suncorp’s capital framework. With ANZ’s CET-1 ratio of 13.3% reported in FY23, ANZ intends to uphold the Suncorp Bank identity and its presence in Queensland post-acquisition. Subsequent to acquiring Suncorp’s banking operations, ANZ witnessed a remarkable response to their Capital Notes 9 issuance, securing AUD 3.2 billion in bids for an offering of AUD 1.7 billion.
Suncorp Group has historically set competitive margins for its capital notes, with the margin range for the upcoming issuance to be disclosed following formal approval. Previous issuances have seen margins from 4.10% in 2017 to 2.90% in 2021.
Suncorp Capital Notes 2 holders should stay informed about potential rollover opportunities into the new issuance.
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