Recently Suncorp embarked on a series of investor briefings and as expected the bank announced a two-tranche issue of 5y fixed- and floating-rate bonds. Demand for the floating-rate component seems to have increased the total size of the issue from what was initially indicated, around $400m-$500m, to the announced $750m. The strong demand has also flowed through to the pricing with the initial guidance around Swap + 130bps but final pricing for the fixed and floating tranches were Swap/BBSW + 125bps.
Back in August, Suncorp issued 1.5y FRNs at BBSW + 52bps. Using the current swap curve that pricing looks around 28bps tighter than today indicating that spreads have widened considerably over the last month or so.