BNK Banking Corporation Limited (ASX: BBC) $14m Regulatory Tier 2 Capital Issue

September 30, 2021

On 28 September 2021, BNK Banking Corporation Limited (ASX: BBC) announced it has successfully priced and received applications from sophisticated and wholesale investors for a $14m Tier 2 Subordinated Notes (“Notes”) issue. The Notes will have a maturity date 10 years from the settlement date with a call date 5 years from the settlement date.

The Notes represent a continuation of the subordinated notes program and follow the $10m Notes issue in FY21. The interest payable on this Notes issue is less than the interest rate payable on the previous Notes issue, a positive for the Company.

The placement will be used to provide additional regulatory capital and underpin the Company’s on balance sheet growth and warehouse securitisation programs. Post completion of the Notes issue, the capital adequacy ratio is estimated to increase by approximately 6% to 28%, on a pro forma basis as at 30 June 2021.