Suncorp Group Limited (ASX: SUN) today announced that it will redeem the Suncorp Capital Notes 3 issued 17 Dec 2019. A total of 3,890,000 notes worth A$389 million. They are outstanding and trading under ASX Notes. It has a redemption date on 17 June 2026
Figure 1: Suncorp Group logo image [Courtesy: Stocklight]
The APRA has approved the redemption of all the notes. And each note holder is entitled to receive a face value of A$100, and the final distribution of A$1.2674 per note. Capital Notes 3 holders do not need to take any action in response to this announcement.
Suncorp Capital Notes 3 and the SUNPH Redemption
Suncorp had the option to convert, redeem, or resell the notes on 17 June 2026, known as the Optional Exchange Date. The Company determined to redeem all of the outstanding Capital Notes 3. The Exchange Notice released further to this SUNPH ASX announcement is unconditional and binding.
APRA Approval and the Terms of Redemption
APRA gave its prior written approval for the redemption of all Capital Notes 3. The approval was a precondition under the Note Terms of Suncorp for being able to proceed. Without it, the redemption could not have moved forward.
Figure 2: Australian Prudential Regulation Authority (APRA) logo [Courtesy: APRA]
This redemption is not an indication that further redemptions of additional capital instruments will take place in the future. It would also equally require the prior written approval of APRA. Holders are also recommended to obtain independent tax advice, as the taxation consequences of this SUNPH ASX announcement will differ between individual holders.
Key Dates and Redemption Entitlements for SUNPH Holders
If you hold Suncorp Capital Notes 3, there are three dates that matter. The last day of trading on the ASX is 28 May 2026. The Record Date for the Redemption Amount payment is 2 Jun 2026. And the final Redemption Amount payment date is 17 Jun 2026.
What Each Holder Will Receive
Holders of each Capital Note 3 will be entitled to receive a Redemption Amount on 17 June 2026. This consists of a face value of A$100.00 per note and a total payout of A$1.2674 per note. Holders are advised to register their banking information with the Registrar prior to the payment date.
Understanding Capital Notes for New Investors
If you have never heard of Capital Notes before, you are not alone. They are classified as hybrid securities, meaning they are part debt, part equity. Consider them as being somewhere between a bond and a share.
Banks and financial institutions in Australia issue Capital Notes to assist them with meeting the capital guidelines of APRA. In exchange, they give investors periodic income payments through the life of the notes.
What Makes Capital Notes Different
Capital Notes typically pay a fixed or floating interest rate until such time as the notes mature. But there is no assurance regarding the quantum and timing of interest payments. That is the biggest distinction from a term deposit; the return is appealing, however, the profile of risk is a lot more complicated.
Capital Notes are hybrid financial products, debt instruments that demonstrate equity-like attributes. In certain instances, such as with a share, they may have no right to capital repayment. This is what encourages new investors to read the product prospectus carefully before making any purchases.
The bottom line is simple. Capital Notes can deliver higher interest rates than those from a standard savings account, they are only available subject to certain terms. Depending on the decision of the issuer and regulatory approval, it can be redeemed, converted or resold.
About Suncorp Group
Suncorp traces its roots back to a merger in 1996 that created Suncorp Metway, which was Australia’s fifth-largest listed financial services group at the time. Since then, the Company has grown and reshaped itself significantly.
Suncorp Group operates in Australia and is the second-largest general insurance company in the country. It is serving more than 9 million customers, including both Australia and New Zealand. The headquarters of the company is situated in Brisbane. The Company currently manages the portfolio of brands like AAMI, GIO, Bingle, and Apia.
Suncorp Group Share Price Snapshot
Suncorp Group Limited (ASX: SUN) is trading at:
- Last traded price: A$17.32 per share
- Market capitalisation: A$18.96 billion
- 52-week range: A$13.80 to A$22.14 per share
Figure 3: Suncorp Group Limited (ASX: SUN) share price chart [Courtesy: ASX]
Industry Outlook
The Suncorp Capital Notes 3 redemption is part of a wider theme within the financial markets in Australia. For major financial institutions, hybrid capital instruments such as SUNPH have been commonly used to support regulatory capital duties. As APRA continues to refine its capital adequacy framework, more institutions may reassess their hybrid capital structures in the coming years.
Future Direction and Impact on Capital Notes Holders
This is a clear exit for Capital Notes 3 holders, and this SUNPH news Australia is important for investors who have been watching closely. All notes will be settled with the Redemption Amount on 17 June 2026, at which time they will no longer exist. Holders will have to use their discretion on how to reinvest this capital based on personal financial goals.
Suncorp has been clear that this decision carries no implication for its other outstanding regulatory capital instruments. Any future redemption of other instruments would be a separate decision entirely. Holders and market watchers should not read broader signals into this Suncorp SUNPH redemption update.
FAQ
Q1. What is SUNPH?
Ans. SUNPH is the ASX trading code for Suncorp Capital Notes 3. These are hybrid capital instruments issued by Suncorp Group in Dec 2019.
Q2. Why is Suncorp redeeming Capital Notes 3?
Ans. Suncorp elected to redeem the notes on the Optional Exchange Date of 17 June 2026. The redemption has been approved by APRA in accordance with the Note Terms.
Q3. What will SUNPH holders receive?
Ans. Each SUNPH holder will receive A$100.00 face value plus a final distribution of A$1.2674 per note and the payment will be made on 17 June 2026.
Q4. Do holders need to do anything?
Ans. No action is required. However, holders should ensure their Australian bank account details are updated with the Registrar before the payment date.
Disclaimer
This article is meant only for informational purposes. If you are an investor who is watching Suncorp closely, all the data published in the content is sourced from ASX announcements and external sources. Kindly verify all the information related to the share price and market data. Any investment should be made at the investor’s own risk. Colitco does not hold any position in the above-mentioned company.
Sources
https://www.suncorpgroup.com.au/investors/securities/suncorp-group-limited-capital-notes-3
https://www.asx.com.au/investors/learn-about-our-investment-solutions/hybrids
https://moneysmart.gov.au/investments-paying-interest/hybrid-securities-and-notes
https://www.anz.com/shareholder/centre/your-shareholding/alternative-securities/hybrids
https://www.suncorpgroup.com.au/about/history
https://www.asx.com.au/markets/etp/SUNPH
Last modified: May 25, 2026
