Heartland Bank AU issues AUD Tier 2 regulatory capital

Heartland Group Holdings Limited | NZX/ASX: HGH | PO Box 9919, Newmarket, Auckland 1149 | heartlandgroup.info

NZX/ASX release
1 July 2024

Heartland Bank Australia issues AUD Tier 2 regulatory capital

Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) is pleased to announce that its
subsidiary Heartland Bank Australia Limited (Heartland Bank Australia) (BBB Outlook: Stable, Fitch
Ratings) successfully completed an inaugural A$50 million Tier 2 Subordinated Note transaction
(Subordinated Notes) on Friday 28 June 2024, arranged with the assistance of Westpac Banking
Corporation.

The 10-year non-call 5-year Subordinated Notes qualify as Tier 2 Capital under the Australian
Prudential Regulation Authority’s capital adequacy framework for authorised deposit-taking
institutions (ADIs), and were priced at 370 basis points over the 3-month Bank Bill Swap Rate.

The transaction received strong support from a broad range of institutional investors with demand
for the offer nearly three times oversubscribed.

The Subordinated Notes were issued as part of Heartland Bank Australia’s ongoing funding and
capital management strategy. The proceeds are intended to support future growth opportunities for
Heartland Bank Australia’s specialist banking products, Reverse Mortgage and Livestock Finance.

The successful Tier 2 Subordinated Notes issuance comes just two months after Heartland’s New
Zealand banking subsidiary Heartland Bank Limited completed its acquisition of Challenger Bank
Limited (subsequently renamed to Heartland Bank Australia). The acquisition made Heartland Bank
Limited the first registered New Zealand bank to acquire an Australian ADI. With the inclusion of
Heartland’s existing Australian businesses, Heartland Finance and StockCo Australia, Heartland Bank
Australia is Australia’s only specialist bank provider of both reverse mortgages and livestock finance.


– ENDS –


The person(s) who authorised this announcement:

Jeff Greenslade
Chief Executive Officer

Andrew Dixson
Chief Financial Officer

For further information, please contact:

Nicola Foley
Group Head of Communications
+64 27 345 6809
nicola.foley@heartland.co.nz
Level 3, Heartland House, 35 Teed Street, Newmarket, Auckland, New Zealand

Heartland Group Holdings Limited | NZX/ASX: HGH | PO Box 9919, Newmarket, Auckland 1149 | heartlandgroup.info
2
About Heartland Bank Australia

Heartland Bank Australia is a digital specialist bank. It focuses on providing Australians with specialist
banking products that are the best or only of their kind, through digital channels.

Heartland Bank Australia (previously known as Challenger Bank and MyLife MyFinance) has been
serving Australians since 1971. It is proud to offer competitive term deposit rates to help Australians
get the most out of their money. It also offers reverse mortgages through Heartland Finance, and
specialist livestock finance through StockCo Australia.

Heartland Finance is Australia’s leading provider of reverse mortgages. Since 2004, Heartland
Finance has helped more than 27,500 Australians to live a more comfortable retirement by releasing
equity from their homes. StockCo Australia is a leading provider of specialist livestock finance for
Australian food producers. It has been operating in Australia since 2014, with origins in New Zealand
dating back to 1995.

Heartland Bank Australia is part of the Heartland group of companies. Heartland has more than 145
years of experience in financial services and is listed on the New Zealand and Australian stock
exchanges (NZX/ASX:HGH).

More: heartlandbank.com.au