Suncorp tests hybrid pricing

Suncorp has launched an issue of hybrid securities, offering the same pricing as Commonwealth Bank when it launched PERLS XII Capital Notes last month.

Suncorp is looking to raise A$250 million. Suncorp Capital Notes 3 will be priced at a margin of 3 to 3.2 per cent over the three-month bank bill rate and are expected to be fully franked.

The notes are perpetual, convertible, subordinated and unsecured. Distributions are discretionary.

The notes can be called in June 2026, which is a shorter term than CBA's notes.

CBA set a margin of 3 per cent on its PERLS XII issue, which raised $1.25 billion last month. The notes have a call date of April 2027.

Macquarie is paying a margin of 4.15 per cent on Macquarie Group Capital Notes 4, which were issued in February and have a call date of September 2026.