Heritage Bank has announced it will launch new ASX-listed debt securities, to be known as Heritage Bank Retail Bonds, to raise approximately $125 million.


The bonds five-year senior, unsecured bonds will pay a fixed interest rate of 7.25 per cent on a quarterly basis and have secured a BBB+ credit rating and a ‘Green’ product complexity indicator.


The transaction marks the first issue of senior, unsecured bonds to be listed on the stock exchange by a mutual bank in Australia.


Made as part of the bank’s ongoing liquidity management and funding strategy, the bonds follow a successful ASX-listed Heritage Notes placement in 2009, which raised $50 million in subordinated, unsecured debt securities.

Heritage Bank Chairman Mr Brian Carter said the Retail Bonds offered retail investors the opportunity to diversify their portfolio with a simply structured debt instrument that provides a fixed rate yield.


"The Heritage Bank Retail Bonds offer an attractive interest rate backed by the strength and stability of Heritage Bank,” Mr Carter said.


"This offer demonstrates Heritage Bank's commitment to diversifying its funding sources, its prudent approach to liquidity management and its continued focus on providing investors with high quality products that offer excellent value.


"This transaction continues the high level of innovation and sophistication that Heritage Bank demonstrates in managing its funding mix," Mr Carter said.


The Offer is now open and comprises:

  • a Member Offer made to Eligible Members of Heritage Bank;
  • a General Offer made members of the general public who are resident in Australia;
  • a Broker Firm Offer made to Australian resident retail or high net worth clients of Syndicate Brokers; and
  • an Institutional Offer to Institutional Investors.


The minimum investment in Heritage Bank Retail Bonds is $5,000 and thereafter in multiples of $1,000.


Further information on the offer is available by calling the Heritage Bank Retail Bonds Information Line on 1300 558 416 (within Australia) or by visiting heritagebankretailbonds.com.au.