Is raising long term debt at 8.1% in Australia good?
Quote:
Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) is pleased to
announce that its subsidiary Heartland Bank Australia Limited (Heartland Bank
Australia) (BBB Outlook: Stable, Fitch Ratings) successfully completed an
inaugural A$50 million Tier 2 Subordinated Note transaction (Subordinated
Notes) on Friday 28 June 2024, arranged with the assistance of Westpac
Banking Corporation.
The 10-year non-call 5-year Subordinated Notes qualify as Tier 2 Capital
under the Australian Prudential Regulation Authority's capital adequacy
framework for authorised deposit-taking institutions (ADIs), and were priced
at 370 basis points over the 3-month Bank Bill Swap Rate.