NGM Group has completed a record-breaking $500 million floating rate five-year senior unsecured primary debt issuance, setting a new benchmark for the mutual banking sector and reinforcing its long-term funding strategy as it grows its lending portfolio and national presence.
The deal is the largest transaction of its kind by tenor ever completed by an Australian mutual bank, with orders totalling around $1.14 billion from domestic and international investors.
The deal comes as mutual banks increasingly tap wholesale markets to diversify beyond deposits, with robust demand for senior unsecured paper signalling investor appetite for well‑capitalised customer‑owned institutions.
Strong demand highlights continued confidence in NGM Group’s performance, strategy, and balance sheet, as it serves more than 650,000 customers nationwide across its retail, broker and digital channels.
NGM Group chief financial officer Richard Burton (pictured) said the raise was a key enabler of the group’s next phase of growth.
“This record-breaking transaction strengthens our ability to support customers with their lending needs and provides a stable, long-term funding base, complementing our already strong retail deposit business,” Burton said.
“Choosing a five-year instrument reflects our focus on sustainability and prudent balance sheet management, ensuring we can manage funding risk responsibly while maintaining flexibility as we grow.”
The proceeds will support NGM Group’s multi-brand growth strategy, enabling Newcastle Permanent and Greater Bank to further strengthen their presence in existing and new markets as the group scales its channels and reach.
Reflecting strong customer demand and earlier investments in digital and distribution capability, proprietary channels now account for around two-thirds of the group’s home loan portfolio, helping over 12,000 customers with new or refinanced home loans in FY25.
The group has also continued to build out its broker proposition, expanding its broker footprint and partnerships to meet growing demand from customers seeking flexible lending solutions via the third-party channel.
“Broker continues to be an important growth channel for us,” Burton said.
“As we continue to expand nationally, we’re focused on building strong broker relationships and ensuring our offering is competitive, accessible and aligned to the needs of customers both locally and across Australia.”
The new funding will also enable continued investment in technology, innovation, and community initiatives, with more than $40 million already invested in FY25 to enhance customer experience and operational efficiency.
NGM Group has invested over $6 million in community initiatives in FY25 and remains committed to its long-standing partnerships.
“This transaction positions us well for the next stage of growth,” Burton said.
“It underpins our ability to invest in our customers, our channels, our technology, and our communities, while staying true to the principles that define us as a customer-owned banking group.”
The issue was priced at a margin of 113 basis points above the three-month BBSW rate.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
