Suncorp says a $500 million debt transaction in the local market has been priced at a favourable level, with good support from investors after the company’s positive annual results.

The five-year senior unsecured debt was priced at 97 basis points over the three-month bank bill swap rate.

Some 101 investors participated in the transaction, including 20 offshore investors, with an order book exceeding $1.3 billion.

“This transaction constitutes an incremental narrowing of funding margins between Suncorp and the major banks and is reflective of the fund management community recognising our stable ratings profile,” Suncorp Banking and Wealth CEO David Carter said.

“This margin represents the lowest funding differential Suncorp has achieved in any term debt market, and reinforces our position as a sustainably competitive alternative to the major banks.”

Mr Carter says it is the group’s first domestic senior unsecured term transaction into the Australian market this year, and formed part of a diversified funding program supported by Suncorp’s A+ credit rating. The transaction was jointly led by ANZ, Commonwealth Bank, Citigroup and Westpac.