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Macquarie Bank Boosts Tier 2 Capital With A$1.25bn Subordinated Notes Issue

Tipranks - Fri Feb 20, 5:41PM CST

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An announcement from Macquarie Group Limited ( (AU:MQG) ) is now available.

Macquarie Bank Limited has issued A$1.25 billion of subordinated notes, comprising A$400 million fixed-to-floating rate and A$850 million floating rate instruments, both maturing in August 2036 and exchangeable into Macquarie Group ordinary shares upon a non-viability event. The subordinated notes qualify as Tier 2 regulatory capital under APRA rules, increasing Macquarie Bank’s total liabilities and Tier 2 Capital by the issue amount, thereby strengthening the group’s regulatory capital position and funding flexibility.

The issue sits under Macquarie Bank’s A$10 billion Subordinated Tier 2 Debt Instrument Programme and is intended to support ongoing compliance with capital requirements while offering investors exposure to subordinated bank debt with equity conversion features. By lodging the required cleansing notice, Macquarie enables any Macquarie Group ordinary shares issued on exchange of the notes to be on-sold to retail investors without further disclosure, facilitating secondary market liquidity and broadening potential investor participation over time.

The most recent analyst rating on (AU:MQG) stock is a Hold with a A$223.52 price target. To see the full list of analyst forecasts on Macquarie Group Limited stock, see the AU:MQG Stock Forecast page.

More about Macquarie Group Limited

Macquarie Group Limited is a global financial services group headquartered in Sydney, operating through Macquarie Bank Limited as its banking arm. The group provides banking, financial, advisory, investment and funds management services, with a focus on capital markets and regulatory capital optimisation to support its balance sheet and growth initiatives.

Average Trading Volume: 683,147

Technical Sentiment Signal: Strong Buy

Current Market Cap: A$79.82B

See more insights into MQG stock on TipRanks’ Stock Analysis page.

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