(For the latest Australia and New Zealand bond news, double
click on [AU/CRD] and then double click on the ID number)
SYDNEY, May 5 (Reuters) - Suncorp-Metway Ltd (SUN.AX),
Australia's second-biggest home and car insurer, sold A$40
million ($37 million) of senior one-year notes at 50 basis
points over swap and BBSW, sole lead UBS said on Monday.
The offer consisted of A$10 million of fixed rate notes and
A$30 million of floating rate notes.
The bank is also expected to launch a Tier 1 capital issue
to bolster its balance sheet, according to market sources.
The offer is expected to be lead managed by Citi, JPMorgan,
Macquarie and UBS, the same sources said.
It is likely to be driven by retail demand rather than
institutional investors.
Suncorp and the four expected mandated banks declined
comment.
Tier 1 is a form of capital that banks are required to
maintain for their operations. It is the closest type to equity
and is also the most expensive form of debt for the bank.
The deal details are as follows:
Issuer: Suncorp-Metway Ltd
Facility: Fixed and floating rate notes
Documentation: Australian
Amount issued: A$40 million
Lead(s): UBS
Issuer rating: A+ (S&P), Aa3 (Moody's)
Tranche: Fixed FRN
Amount: A$10 mln A$30 mln
Maturity: May 8 2009 May 15 2009
Set date: May 8 May 15
Coupon: 8.250% +50bp/90-day BBSW
Yield: 8.300% +50bp/90-day BBSW
Spread: +50bp/swap +50bp/90-day BBSW
Issue price: 99.953 100
($1=A$1.07)
(Reporting by Cecile Lefort)
