Debt Issuance Programmes dated 21 June 2013
Dated 17 April 2014
Nature of the Bonds
Direct, unsubordinated, unsecured and general obligations of the Issuer and will rank equally with all other outstanding unsecured and unsubordinated obligations of the Issuer, other than indebtedness mandatorily preferred by law. The bonds rank senior to the Issuer’s subordinated obligations, including all subordinated MTNs.
3 Month BBSW + 1.10%, payable in arrears on 23 January, 23 April, 23 July and 23 October in each year, including the Maturity Date.
23 January, 23 April, 23 July and 23 October in each year.
3 Month BBSW
Repayment at Par on the Maturity Date
On the Maturity Date, bondholders are scheduled to receive the Face Value and the final Coupon Payment for the last Coupon Period.
Key benefits include:
- interest paid quarterly in arrears;
- interest paid is floating rate;
- interest paid as 100% cash;
- interest is not deferrable nor are interest payments discretionary;
- rank equally with all other senior and unsecured creditors of the Issuer.
The value of an investment in the Bonds may fluctuate due to various factors, including investor perceptions, worldwide economic conditions, interest rates, debt market conditions and factors that may affect Suncorp-Metway’s financial performance. The following risks may also affect an investment in the Bonds:
- Lack of liquidity – in the secondary market for the Bonds;
- Interest rate risks – bondholders may suffer unforeseen losses due to fluctuations in interest rates;
- Regulatory risks – The banking industry in Australia is highly regulated, and regulatory changes may adversely affect Suncorp-Metway’s financial performance;
- Banking Act – The Bonds are not protected accounts within the meaning of the Banking Act 1959, as such there will likely be significant liabilities of the Issuer that are mandatorily preferred;
- Litigation risks – Risks relating to litigation and regulatory actions;
- Operational risks – The risk of loss resulting from inadequate internal processes and controls, people and systems or from external events;
- Default risk – if an event of default occurs under the Bonds, or the Issuer fails to perform any obligation in relation to the Bonds, such event or failure may impact on the value of an investment in the Bonds, the transferability of the Bonds and the ability of a holder to recover amounts due under the Bonds.
Early Redemption by Issuer
Yes, for tax reasons
Events of Default:
- Payment Default: Applicable with a 10 day cure period for interest and principal payments;
- Breach of other obligations: Applicable, with a 21 day cure period;
- Insolvency / Winding Up: Applicable
- Unlawfulness: It becomes unlawful for the Issuer to perform any of its obligations under the bonds
- Enforcement against assets: Applicable, with a cure period of 30 days, and must materially prejudice the performance by the Issuer of its obligations under the bonds
- Enforcement of security: Applicable, with a cure period of 30 days, and must materially prejudice the performance by the Issuer of its obligations under the bonds