Yesterday afternoon, ASX 200 bank Judo Capital Holdings Ltd (ASX:JDO) announced it has successfully priced a new $150 million Tier 2 Subordinated Notes transaction, highlighting strong investor support and an improved credit profile.
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What did Judo Capital report?
- New $150 million Tier 2 Subordinated Notes issued
- 10-year (Non-Call 5) structure priced at 215 basis points over 3-month BBSW
- Pricing represents a 120 basis point improvement on previous Tier 2 issue (October 2024)
- Notes were significantly oversubscribed, showing strong demand from investors
- Settlement date set for 8 October 2025
What else do investors need to know?
Judo Bank says this latest Tier 2 capital raise comes amid ongoing efforts to optimise its capital structure and support continued lending growth. The bank is aiming to maintain high levels of capital as it works towards achieving its scale targets.
This successful issue follows a similar Tier 2 note offering completed in October 2024, but with improved pricing terms reflecting a stronger credit position and positive market response. The proceeds will further enhance the bank's regulatory capital base and provide flexibility for future growth opportunities.
What did Judo Capital management say?
Commenting on this development, Judo Bank CEO Chris Bayliss said:
We are very pleased with the outcome of this transaction, which received strong investor support and was significantly oversubscribed. The pricing represents an improvement of 120 basis points compared to our previous Tier 2 issuance in October 2024, reflecting Judo's strengthening credit profile and favourable market conditions.We remain focused on optimising our capital structure while maintaining high levels of capital to support continued above-system lending growth towards our at-scale metrics.
What's next for Judo Capital?
The settlement of the new notes is scheduled for 8 October 2025. Management remains focused on supporting lending growth while optimising the balance sheet to maintain a strong capital position.
With ongoing improvements to its credit profile, Judo Bank is well positioned to pursue its strategic goals and continue expanding its business lending activities in the months ahead.
Judo Capital share price snapshot
Judo Capital shares have increased 4% over the past 12 months, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same timeframe.
