The mutual banking group has completed a $500 million debt issuance, marking the largest transaction of its kind ever undertaken by an Australian mutual bank.
Newcastle Greater Mutual Group (NGM Group) – encompassing Greater Bank and Newcastle Permanent (which merged in March 2023) – has transacted a floating rate five-year senior unsecured primary debt issuance, which the lending group said will enable the group’s next phase of growth.
The issue received orders totalling around $1.14 billion from domestic and international investors, which NGM Group said reflected strong demand and confidence in the group’s strategy and balance sheet.
The issue was priced at a margin of 113 basis points above the three-month BBSW rate.
The funding will support NGM Group’s multibrand growth strategy as it expands its lending portfolio and national presence. It will reportedly enable Newcastle Permanent and Greater Bank to strengthen their footprint across existing and new markets, while also allowing continued investment in digital capabilities, technology, and community initiatives.
NGM Group’s chief financial officer, Richard Burton, said: “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.
“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.”
Proprietary channels now account for approximately two-thirds of the group’s home loan portfolio, assisting over 12,000 customers with new or refinanced home loans in the financial year 2025.
However, NGM Group has also expanded its broker footprint and partnerships, meeting rising customer demand for flexible lending solutions through third-party channels.
The CFO noted the importance of the broker channel and stated: “Broker continues to be an important growth channel for us. 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.
“This transaction positions us well for the next stage of growth. 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.”
NGM Group has experienced strong growth in its lending volumes recently, with its home loan book rising 7 per cent, to over $18 billion, over FY25.
It supported a record 12,122 home buyers, including 1,688 first home buyers.
Total assets grew 9 per cent to $23.1 billion, fully funded by a 7 per cent increase in deposits, while personal lending rose 12.4 per cent to $123.4 million.
The group credited its growth to competitive products, broker partnerships, and expanding digital home loan offerings, including Greater Bank’s new online application launched in June.
Speaking in October last year, CEO Bernadette Inglis highlighted the group’s strategic focus on customer-owned banking values, digital innovation, and technology investment of over $40 million, aimed at delivering faster, safer, and more seamless banking experiences.
[Related: Newcastle Greater Mutual reports record number of mortgagors in FY25]
