NGM Group has su
ccessfully transacted a record-breaking $500 million floating rate five-year senior unsecured primary debt issuance, setting a new benchmark for the mutual banking sector, and reinforcing the Group’s long-term funding strategy as it continues to expand its lending portfolio and national reach.
The result marks the largest transaction of its kind by tenor ever completed by an Australian mutual bank.
Generating strong demand, the issue received orders totalling around $1.14 billion from domestic and international investors.
Strong interest from investors highlights continued confidence in NGM Group’s performance, strategy and balance sheet, as the Group continues its strong momentum and continues to serve more than 650,000 customers nationwide across its retail, broker and digital channels.
NGM Group Chief Financial Officer Richard Burton said the funding raise was a key enabler of the Group’s next phase of growth.
“This record-breaking transaction strengthens our ability to support customers with their lending needs and provides a stable, long-term funding base, complementing our already strong retail deposit business,” Mr Burton said.
“Choosing a five-year instrument reflects our focus on sustainability and prudent balance sheet management, ensuring we can manage funding risk responsibly while maintaining flexibility as we grow,” Mr Burton said.
The funding will support NGM Group’s multi-brand growth strategy, enabling Newcastle Permanent and Greater Bank to continue strengthening their presence across existing and wider markets as the Group scales its channels and reach.
Reflecting strong customer demand and the success of investments in digital and distribution capability, proprietary channels now account for around two-thirds of the Group’s home loan portfolio, helping over 12,000 customers with new or refinanced home loans in FY25.
The Group has also continued to strengthen its broker proposition, expanding its broker footprint and partnerships to meet growing demand from customers seeking flexible lending solutions through the third-party channel.
“Broker continues to be an important growth channel for us,” Mr Burton said.
“As we continue to expand nationally, we’re focused on building strong broker relationships and ensuring our offering is competitive, accessible and aligned to the needs of customers both locally and across Australia.”
In addition to supporting customers’ lending needs, the funding enables continued investment in technology, innovation and community – with more than $40 million already invested in FY25 to enhance customer experience and operational efficiency.
NGM Group also remains committed to its long-standing focus on community partnerships, investing over $6 million in community initiatives in FY25.
“This transaction positions us well for the next stage of growth,” Mr Burton said.
“It underpins our ability to invest in our customers, our channels, our technology and our communities, while staying true to the principles that define us as a customer-owned banking group.”
The issue was priced at a margin of 113 basis points above the 3-month BBSW rate.