Debt investors

Unsecured funding

Macquarie Group funding structure

Macquarie Group has two primary external funding vehicles:

  • Macquarie Bank Limited (MBL) which provides funding to the Bank Group.
  • Macquarie Group Limited (MGL) which provides funding predominately to the Non-Bank Group

MBL and MGL have separate and distinct funding, capital and liquidity management requirements.

1. Certain assets of the Credit Markets business, certain activities of the Cash Equities business and the Commodity Markets and Finance business, and some other less financially significant activities are undertaken from within the Non-Banking group

Macquarie Bank Limited and Banking Group

Macquarie Bank Limited (MBL) is an APRA regulated Authorised Deposit Taking Institution (ADI) comprising Australian and international financial services businesses.

MBL provides funding to the Bank Group.

Macquarie Bank Limited (MBL) is an Authorised Deposit-taking Institution (ADI) regulated by the Australian Prudential Regulation Authority (APRA). MBL has the following accreditations for calculating Capital Adequacy:

  • Foundation Internal Ratings - Based Approach (FIRB) for credit risk
  • Advanced Measurement Approach (AMA) for operational risk
  • Internal model approach for market risk
  • Internal model approach for interest rate risk in the banking book

These advanced approaches place a higher reliance on a bank's internal capital measures and therefore require a more sophiticated level of risk management and risk measurement practices.

The Macquarie Bank Group ratios as at 31 March 2020 on a Harmonised Basel III basis1 are:

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Ratio As at 31 March 2020
Macquarie Bank Group Common Equity Tier 1 capital ratio2 14.9%
Macquarie Bank Group Tier 1 capital ratio 16.4%
  1. Harmonised Basel III relates to the Basel III guidelines defined by the Basel Committee on Banking Supervision, documented in the following: ‘Basel III: a global regulatory framework for more resilient banks and banking systems’, published December 2010 (revised June 2011) by the Bank for International Settlements (BIS) and further updated by BCBS 279 ‘The standardised approach for measuring counterparty credit risk exposures’.
  2. Common Equity Tier 1 capital represents Tier 1 capital excluding hybrid Tier 1 instruments.

Basel III

APRA is requiring Australian banks to follow an accelerated Basel III implementation compared to the Basel Committee's gradual phase-in of Basel III, with a minimum Common Equity Tier 1 (CET1) ratio of 4.5% required from January 2013 and immediate phase in of additional CET1 deductions. In addition, APRA has added conservative overlays ('super equivalence') to the Basel Committee's Basel III capital requirements.

Macquarie Bank Group position at 31 March 2020 meets the APRA latest Basel III requirements, i.e. minimum ratios plus capital conservation buffer.

Further information

For more information on APRA's ADI Prudential Framework read the ADI section of the APRA website.

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Ratings agency Short-term rating Long-term rating Latest report
Fitch Ratings F-1/Stable A/Negative Report
Moody's Investors Service P-1/Stable A-2/Stable Report
Standard & Poor's A-1* A+/Negative Report
Ratings upgrade

*Standard &Poor's does not place outlook statements on short-term ratings

MBL has three debt programs:

  • $US15 billion Commercial Paper Program
  • $US20 billion Rule 144A/Regulation S Medium Term Note Program
  • $US25 billion multi-instrument Regulation S Debt Instrument Program (DIP)

Securities that may be issued under the DIP include:

  • Euro commercial paper
  • Euro commercial deposits
  • Euro medium-term notes
  • Senior and subordinated fixed or floating rate notes
  • Transferable deposits

Download documents for most recent DIP offering.

Documents Incorporated by Reference

Financial Statements

MBL DIP previous terms and conditions set out on:

MBL Constitution

Issuer

Macquarie Bank Limited

Level 6, 50 Martin Place, Sydney NSW 2000, Australia
Tel: +61 2 8232 3608
Fax: +61 2 8232 4227
Attention: Treasurer

Dealer

Australia and New Zealand Banking Group Limited

ANZ Tower, Level 5, 242 Pitt Street, Sydney NSW 2000, Australia
Telephone: +61 2 8037 0200
Fascimile: +61 2 8937 7115
Attention: Head of Bond Syndicate, Global Markets

Merrill Lynch International

2 King Edward Street, London EC1A 1HQ, United Kingdom
Telephone: +44 (020) 7995 3995
Fascimile: +44 (020) 7995 0048
Attention: EMTN Trading and Distribution Desk

Bank of China Limited

Level 6, 39-41 York Street, Sydney NSW 2000, Australia
Telephone: +61 2 8235 5808
Fascimile: +61 2 9262 1084
Attention: Structured Finance Department

Citigroup Global Markets Limited

Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB, United Kingdom
Telephone: +44 (020) 7986 9050
Email: mtndesk@citi.com
Attention: MTN Desk

Commonwealth Bank of Australia

Level 21, Darling Park Tower 1, 201 Sussex Street, Sydney NSA 2000, Australia
Telephone: +61 2 9118 1217
Attention: Head of Fixed Income Origination

Goldman Sachs International

Peterborough Court, 133 Fleet Street, London EC4A 2BB, United Kingdom
Telephone: +44 (020) 7774 1000
Fascimile: +44 (020) 7774 4477
Attention: Euro Medium Term Note Desk

HSBC Bank plc

8 Canada Square, London E14 5HQ, United Kingdom
Telephone: +44 (020) 7991 8888
Fascimile: +44 (020) 7992 4973
Attention: Transaction Management Group

ING Bank N.V.

Foppingadreef 7, 1102 BD Amsterdam, The Netherlands
Telephone: +31 20 563 8185
Fascimile: +31 20 565 8515
Attention: DCM Origination / TRC 00.032

J.P. Morgan Securities plc

25 Bank Street, Canary Wharf, London E14 5JP, United Kingdom
Telephone: +44 (020) 7134 1470
Fascimile: +44 (020) 3493 1413
Attention: Euro Medium Term Note Desk

Macquarie Bank International Limited

Ropemaker Place, 28 Ropemaker Street, London EC2Y 9HD, United Kingdom
Telephone: +44 (020) 3037 4625
Fascimile: +44 (020) 7065 2017
Attention: Head of Origination and Structuring

Macquarie Bank Limited

Level 6, 50 Martin Place, Sydney NSW 2000, Australia
Telephone: +61 2 8232 8427
Fascimile: +61 2 8232 8344
Attention: Head of Origination and Structuring

National Australia Bank Limited

88 Wood Street, London EC2V 7QQ, United Kingdom
Telephone: +44 (020) 7710 2994
Fascimile: +44 (020) 7710 1959
Attention: DCM Desk

SMBC Nikko Capital Markets Limited

One New Change, London EC4M 9AF, United Kingdom
Telephone: +44 (020) 3527 7000
Attention: Legal

USB AG London Branch

5 Broadgate, London EC2M 2QS, United Kingdom
Telephone: +44 (020) 7567 2479
Email: ol-emtndesk-london@ubs.com
Attention: MTN Desk

Wells Fargo Securities, LLC

550 South Tryon Street, 5th Floor, Charlotte, North Carolina 28202, United States of America
Fascimile: +1 (704) 410 0326
Email: tmgcapitalmarkets@wellsfargo.com
Attention: Transaction Management

Westpac Banking Corporation

Level 2, Westpac Place, 275 Kent Street, Sydney NSW 2000, Australia
Telephone: +61 2 8253 4574
Attention: Executive Director, Head of Debt Securities

Issue and Principal Paying Agent

Citibank, N.A., London Branch c/o Citibank, N.A., Dublin Branch

Ground Floor, 1 North Wall Quay, Dublin 1, Ireland
Email: ppayments@citi.com
Fascimile: +353 1 622 4030
Attention: MTN Desk, Agency and Trust

CMU Lodging Agent

Citicorp International Limited

10/F, Citi Tower, One Bay East, 83 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong
Email: agencytrust.tmg@citi.com
Fascimile: +852 2323 0279
Attention: Agency and Trust

Australian Registrar

Austraclear Services Limited

20 Bridge Street, Sydney NSW 2000, Australia

Australian and English Legal Advisers

To the Issuer
King & Wood Mallesons

Governor Phillip Tower, 1 Farrer Place, Sydney NSW 2000, Australia

Auditors

To the Issuer
Pricewaterhouse Coopers

One International Towers, Sydney, Watermans Quay, Barangaroo NSW 2000, Australia

English Legal Advisers

To the Dealers
Allen & Overy LLP

9th Floor, Three Exchange Square, Central, Hong Kong

Funding

MBL is mainly funded by capital, term liabilities and deposits.

The key tools used for accessing wholesale debt funding markets for MBL are:

  • $US25 billion multi-instrument Regulation S Debt Instrument Program
  • $US10 billion Commercial Paper Program
  • $US20 billion Rule 144A/Regulation S Medium Term Note Program

MBL accesses the Australian capital markets through the issuance of negotiable certificates of deposits.

For more information on MBL's wholesale funding programs and program documentation, view MBL Debt programs above.

Liquidity

The MBL liquidity policy outlines the liquidity requirements for the Banking Group.

The key requirement of the policy is that MBL is able to meet all of its liquidity obligations on a daily basis and during a period of liquidity stress: a 12 month period of constrained access to funding markets and with only a limited impact on franchise businesses.

Further information

For MBL's latest funding profile and more information on MBL's fundng and liquidity requirements, view the latest Management Discussion and Analysis, produced in conjunction with the Macquarie Group result announcement.

Macquarie Group Limited and Non-Banking Group

MGL is an ASX-listed diversified financial services holding company with its head office in Sydney, Australia. It is regulated by APRA as the Non-Operating Holding Company (NOHC) of a licensed bank.

MGL provides funding predominately to the Non-Bank Group.

As an Australian Prudential Regulation Authority (APRA) authorised and regulated Non-Operating Holding Company, MGL is required to hold adequate regulatory capital to cover the risks for Macquarie, including the Non-Bank Group. MGL and APRA have agreed a capital adequacy framework for Macquarie, based on APRA’s capital standards for Authorised Deposit-taking Institution (ADI) and Macquarie’s Board-approved Economic Capital Adequacy Model (ECAM).

Macquarie’s capital adequacy framework requires it to maintain minimum regulatory capital requirements calculated as the sum of:

  • The Bank Group’s minimum Tier 1 capital requirement, based on a percentage of risk-weighted assets plus Tier 1 deductions using prevailing APRA ADI Prudential Standards; and
  • The Non-Bank Group capital requirement, calculated using Macquarie’s ECAM. Transactions internal to Macquarie are eliminated.

As at 31 March 2020, Macquarie had regulatory capital of $A24.8 billion, $A9.2 billion1,2 in excess of minimum regulatory capital requirement on a Harmonised Basel III basis3.

Basel III

APRA is requiring Australian banks to follow an accelerated Basel III implementation compared to the Basel Committee’s gradual phase-in of Basel III, with a minimum Common Equity Tier 1 (CET1) ratio of 4.5% required from January 2013 and immediate phase in of additional CET1 deductions. In addition, APRA has added conservative overlays (‘super equivalence’) to the Basel Committee’s Basel III capital requirements.

Macquarie Bank Group’s position at 31 March 2020 meets the APRA’s Basel III requirements, i.e. minimum ratios plus capital conservation buffer.

  1. Calculated at 8.5% of the Bank Group RWA. The 8.5% represents the Basel III minimum Tier 1 ratio of 6% plus 2.5% capital conservation buffer (CCB).
  2. Based on materiality, the countercyclical capital buffer (CCyB) of ~3bps has not been included. The individual CCyB varies by jurisdiction and the Bank Group’s CCyB is calculated as a weighted average based on exposures in different jurisdictions.
  3. Harmonised Basel III relates to the Basel III guidelines defined by the Basel Committee on Banking Supervision, documented in the following: ‘Basel III: a global regulatory framework for more resilient banks and banking systems’, published December 2010 (revised June 2011) by the Bank for International Settlements (BIS) and further updated by BCBS 279 ‘The standardised approach for measuring counterparty credit risk exposures’.
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Ratings agency Short-term rating Long-term rating Latest report
Fitch Ratings F-2/Stable A-/Negative Report
Moody's Investors Service P-2/Stable A3/Stable MGL Report
MFHPL Report
Standard & Poor's A-2* BBB+/Stable Report
Ratings upgrade

*Standard &Poor's does not place outlook statements on short-term ratings

MGL has two debt programs:

  • $US20 billion Rule 144A/Regulation S medium Term Note Program
  • $US10 billion multi-instrument Regulation S Debt Instrument Program (DIP)

Securities that may be issued under the DIP include:

  • Euro Commercial Paper
  • Euro Commercial Deposits
  • Euro-Medium Term Notes
  • Senior and subordinated fixed/floating rate notes
  • Transferable Deposits

Download documents for most recent DIP offering.

Documents Incorporated by Reference

Financial Statements

MGL DIP previous terms and conditions set out on:

MGL Constitution

Issuer

Macquarie Group Limited

Level 6, 50 Martin Place, Sydney NSW 2000, Australia
Tel: +61 2 8232 3608
Fax: +61 2 8232 4227
Attention: Treasurer

Dealer

Australia and New Zealand Banking Group Limited

ANZ Tower, Level 5, 242 Pitt Street, Sydney NSW 2000, Australia
Telephone: +61 2 8037 0200
Fascimile: +61 2 8937 7115
Attention: Head of Bond Syndicate, Global Markets

Merrill Lynch International

2 King Edward Street, London EC1A 1HQ, United Kingdom
Telephone: +44 (020) 7995 3995
Fascimile: +44 (020) 7995 0048
Attention: EMTN Trading and Distribution Desk

Bank of China Limited

Level 6, 39-41 York Street, Sydney NSW 2000, Australia
Telephone: +61 2 8235 5808
Fascimile: +61 2 9262 1084
Attention: Structured Finance Department

Citigroup Global Markets Limited

Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB, United Kingdom
Telephone: +44 (020) 7986 9050
Email: mtndesk@citi.com
Attention: MTN Desk

Commonwealth Bank of Australia

Level 21, Darling Park Tower 1, 201 Sussex Street, Sydney NSA 2000, Australia
Telephone: +61 2 9118 1217
Attention: Head of Fixed Income Origination

Goldman Sachs International

Peterborough Court, 133 Fleet Street, London EC4A 2BB, United Kingdom
Telephone: +44 (020) 7774 1000
Fascimile: +44 (020) 7986 9050
Attention: Euro Medium Term Note Desk

HSBC Bank plc

8 Canada Square, London E14 5HQ, United Kingdom
Telephone: +44 (020) 7991 8888
Fascimile: +44 (020) 7992 4973
Attention: Transaction Management Group

ING Bank N.V.

Foppingadreef 7, 1102 BD Amsterdam, The Netherlands
Telephone: +44 31 20 563 8185
Fascimile: +31 20 563 8502
Attention: DCM Origination / TRC 00.032

J.P. Morgan Securities Ltd.

25 Bank Street, Canary Wharf, London E14 5JP, United Kingdom
Telephone: +44 (020) 7134 1470
Fascimile: +44 (020) 3493 1413
Attention: Euro Medium Term Note Desk

Macquarie Bank International Limited

Ropemaker Place, 28 Ropemaker Street, London EC2Y 9HD, United Kingdom
Telephone: +44 (020) 3037 4625
Fascimile: +44 (020) 7065 2017
Attention: Head of Origination and Structuring

Macquarie Bank Limited

Level 6, 50 Martin Place, Sydney NSW 2000, Australia
Telephone: +61 2 8232 8427
Fascimile: +61 2 8232 8344
Attention: Head of Origination and Structuring

National Australia Bank Limited

88 Wood Street, London EC2V 7QQ, United Kingdom
Telephone: +44 (020) 7710 2994
Fascimile: +44 (020) 7710 1959
Attention: DCM Desk

SMBC Nikko Capital Markets Limited

One New Change, London EC4M 9AF, United Kingdom
Telephone: +44 (020) 3527 7000
Attention: Legal

Wells Fargo Securities, LLC

550 South Tryon Street, 5th Floor, Charlotte, North Carolina 28202, United States of America
Telephone: +1 (704) 410 0326
Attention: Transaction Management

Westpac Banking Corporation

Level 2, Westpac Place, 275 Kent Street, Sydney NSW 2000, Australia
Telephone: +61 2 8253 4574
Attention: Executive Director, Head of Debt Securities

Issue and Principal Paying Agent

Citibank, N.A., London Branch c/o Citibank, N.A., Dublin Branch

Ground Floor, 1 North Wall Quay, Dublin 1, Ireland
Email: ppayments@citi.com
Fascimile: +353 1 622 4030
Attention: MTN Desk, Agency and Trust

CMU Lodging Agent

Citicorp International Limited

10/F, Citi Tower, One Bay East, 83 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong
Email: agencytrust.tmg@citi.com
Fascimile: +852 2323 0279
Attention: Agency and Trust

Australian Registrar

Austraclear Services Limited

20 Bridge Street, Sydney NSW 2000, Australia

Australian and English Legal Advisers

To the Issuer
King & Wood Mallesons

Governor Phillip Tower, 1 Farrer Place, Sydney NSW 2000, Australia

Auditors

To the Issuer
Pricewaterhouse Coopers

One International Towers, Sydney, Watermans Quay, Barangaroo NSW 2000, Australia

English Legal Advisers

To the Dealers
Allen & Overy LLP

9th Floor, Three Exchange Square, Central, Hong Kong

Funding

Reflecting the longer-term nature of the Non-Banking Group asset profile, MGL is funded predominantly with a mixture of capital and long term wholesale funding.

MGL’s debt funding includes:

  • Senior Credit Facility
  • Wholesale funding programs:
    • $US10 billion Rule 144A/Regulation S medium Term Note Program
    • $US10 billion multi-instrument Regulation S Debt Program (DIP)

For more information on MGL's wholesale funding programs and program documentation, view MGL Debt programs above.

Liquidity

The MGL liquidity policy outlines the liquidity requirements for the Non-Banking Group.

The key requirement of the policy is that MGL is able to meet all of its liquidity obligations on a daily basis and during a period of liquidity stress - defined as a 12 month period with no access to funding markets - and with only a limited impact on franchise businesses.

Further information

For MGL's latest funding profile and more information on MGL's funding and liquidity requirements view the latest Management Discussion and Analysis, produced in conjunction with the Macquarie Group result announcement.

Debt investor presentation

Investors

Unsecured funding

 

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