Tasmania’s MyState Bank priced a $25m Tier 2 subordinated bond issue last week at a mouth-watering BBSW + 500bps. MyState Bank is the renamed MyState Financial, perhaps best known in mainland states for its takeover of Queensland’s The Rock Building Society in 2011. It is listed on the ASX.
The bonds have a maturity of 10 years with a non-call period of 5 years and are Basel III compliant, meaning they satisfy APRA’s rules for capital eligibility. The bonds will convert into equity in the event that APRA deems the bank non-viable or if the level of bank capital falls below a certain threshold. S&P is understood to have rated the bonds as BB+.