Suncorp-Metway printed a A$350m (Eu240m) 10 year covered bond on the back of A$450m of orders today (Tuesday), finding sufficient demand to set the size well above a minimum target of A$100m while also tightening the spread by 5bp.

Suncorp leads ANZ, Deutsche, NAB and UBS launched the 10 year fixed rate issue yesterday (Monday) with initial price thoughts of the 140bp over swaps area, for a minimum size of A$100m. The leads then announced that the book had exceeded A$250m with a significant number of domestic and Asian accounts still to revert, while the guidance was unchanged.

The guidance was later on Monday revised to 135bp-140bp on the back of books in excess of A$350m, before the spread was today (Tuesday) fixed at 135bp and the size at A$350m on the back of orders approaching A$450m.

“It looks like they got good early momentum, which carried the deal well over the A$100m finish line,” said a syndicate official away from the leads.

The new issue is Suncorp’s second covered bond of the year, following a A$500m floating rate note on 15 June that was priced at 110bp over three month BBSW, at the wide end of guidance of 105bp-110bp.

“They were also able to leverage the spread a bit tighter this time around, which is clearly positive,” said the syndicate official.

Suncorp sold its first covered bond in May 2012, a A$1.6bn dual tranche deal, and has since only issued benchmarks denominated in in its domestic currency.

The Australian issuer has this year also sold a US$500m (Eu447m, A$652) three year senior unsecured bond in May and a A$750m three year senior issue in April.

“All transactions were over-subscribed, attracting a diverse group of investors across funds, insurance, corporate and pension market sectors,” the issuer said in its full year results, published on 4 August. “These transactions demonstrated the bank’s ability to lengthen the duration of wholesale funding to promote the longer term resilience of the funding profile and meet the requirements of the net stable funding ratio (NSFR).”

The new issue is Suncorp’s longest-dated covered bond, with its previous longest issuance being five year deals.