ING Bank’s investor-focused approach delivers record senior deal

ING Bank Australia's latest dual-tranche deal is its largest transaction in senior format and was supported by a record breaking orderbook, driven by appetite from Australian asset managers and Asian accounts. Strategic timing, tight pricing and careful allocation reflect the bank's deepening market presence and growing regional investor base.

Sophie He  Senior Staff Writer KANGANEWS

Source: UBS 4 June 2025

Source: UBS 4 June 2025

ING Bank dual-tranche deal details

Issuer: ING Bank Australia
Issuer rating: A/A3/A
Issue rating: A/A3
Pricing date: 3 June 2025
Maturity date: 13 June 2028 and 13 June 2030
Format: senior-unsecured bond
Total volume: A$1.75 billion (US$1.14 billion)
Book volume at pricing: “more than A$3.6 billion”
Margins: 80bp/3m BBSW, 95bp/3m BBSW
Indicative margins: 85bp/3m BBSW, 100bp/3m BBSW
Number of investors: 95
Geographic distribution: see chart 1
Distribution by investor type: see chart 2
Lead managers: ANZ, ING Bank, Mizuho Securities, UBS, Westpac Institutional Bank

“It is our largest combined orderbook and our largest senior-unsecured transaction. It also achieved the tightest spread for the programme and the tightest differential to the Australian major banks.”

CHARLENE BREYTENBACH  SENIOR MANAGER, DEBT AND CAPITAL ISSUANCE ING BANK AUSTRALIA

“We had a covered bond maturity at the end of May that we needed to refinance. We had always planned a senior transaction for the first half of 2025, and chose to execute it in June after exiting the blackout period at the end of April and completing a nondeal roadshow in May.”

“We saw robust demand from Australian asset managers early on, particularly for the three-year tenor, which matched the feedback from our May nondeal roadshow across Singapore, Hong Kong, Taipei, Melbourne and Sydney.”

“The initial guidance was set at 85 basis points over swap which was an 8-9 basis point concession to fair value. We tightened the spread by five basis points from initial guidance, leaving a 3-4 basis points new-issue concession.”

“As investor interest shifted toward the floating-rate tranches, we decided to focus on those and not proceed with the fixed-rate tranche. Our funding plan typically includes three transactions annually: at least one senior-unsecured deal and one covered bond, and a residential mortgage-backed securities transaction if we need additional volume.”

“We deeply value Asian investor demand, which is why we conducted the nondeal roadshow in Asia. Building our brand in the region is a priority, and it will remain a focus moving forward.”