$450 million raised from domestic and international investors

Customer-owned bank Newcastle Greater Mutual Group (NGM Group) has closed a $450 million five-year floating debt round with a mix of domestic and international investors, marking the largest-ever capital raise among the Australian mutuals to date.
NGM Group – which was formed following a merger between Greater Bank and Newcastle Permanent in 2023 – intends to use the funds to strengthen its lending capabilities.
Speaking to MPA, NGM Group’s recently appointed chief finance officer Richard Burton highlighted that the capital raise comes as the bank increasingly looks to the broker channel to expand its lending portfolio.
“Over the next couple of months, we’re expanding our broker footprint and inviting another 1,500 brokers to originate through the Newcastle Permanent brand,” said Burton.
Deal volumes in NGM Group’s home territories of Newcastle and the Hunter Region, in particular, are “growing pretty rapidly”, he added.
Improving sentiment among mortgagors
Although deal volumes slowed towards the end of 2024, the potential for interest rate cuts in the coming months has boosted sentiment, noted Burton.
Mortgagors, in particular, have helped to boost consumer sentiment, according to the latest Westpac data.
While renters and outright homeowners recorded further pessimism in their assessment of their personal finances in January, mortgagors recorded a 15% month-on-month increase, the data showed.
On the investor side, Burton is seeing a “strong investor appetite” in the market, adding that he believes the jumbo capital raise “shows the trust the investment community has in the newly formed NGM Group at only two years”.
Less than a year ago, NGM Group conducted a $400 million bookbuilding exercise which was itself a record at the time.
NGM Group became one of the largest customer-owned banks in Australia following the 2023 merger, with around $20 billion in assets under management.
The capital raise was facilitated by Barrenjoey.