Suncorp Bank completed its second covered bond transaction yesterday, The bank will pay 90 basis points over mid swap for the five-year fixed rate issue. Suncorp Bank treasurer Tim Hughes said in a statement that the issue was upsized from A$500 million at launch to a final $600 million. Hughes said the majority of the bonds were taken up by real money investors (fund managers).Suncorp's initial covered bond issue in May raised $1.6 billion. That deal was priced at around 140 basis points over mid swap.Hughes said: "Given the recent contraction in spreads in the market we felt it appropriate to take advantage of the favourable conditions and bring forward a portion of our 2013 funding requirement."Suncorp has an A+ credit rating. Joint lead managers for the transaction were ANZ, Deutsche Bank AG, Citi and Macquarie Bank.