Transaction to fund multi-brand expansion and third-party distribution
NGM Group has completed a $500 million floating rate five-year senior unsecured debt transaction and signalled that a key use of the funding will be to strengthen its broker proposition as it expands nationally.
The issue, described as the largest of its tenor completed by an Australian mutual bank, is intended to support growth through both proprietary and third-party channels, including an enlarged broker footprint. The deal drew orders of about $1.14 billion from domestic and international investors, more than twice the final issue size.
According to the group, the transaction supports its long-term funding strategy as it grows its lending portfolio and extends its reach across Australia. NGM Group now serves more than 650,000 customers through retail, broker and digital channels.
“This record-breaking transaction strengthens our ability to support customers with their lending needs and provides a stable, long-term funding base, complementing our already strong retail deposit business,” said Richard Burton (pictured right), chief financial officer at NGM Group.
“Choosing a five-year instrument reflects our focus on sustainability and prudent balance sheet management, ensuring we can manage funding risk responsibly while maintaining flexibility as we grow.”
The proceeds will back the group’s multi-brand strategy, enabling Newcastle Permanent and Greater Bank to build their presence in existing and new markets while NGM Group scales its distribution and digital capability.
Proprietary distribution now accounts for about two-thirds of the home loan portfolio, with more than 12,000 customers taking out new or refinanced home loans in FY25.
For intermediaries, the group’s latest funding round underlines its intention to compete more actively through the third-party channel. NGM Group has been expanding its broker footprint and partnerships in response to borrower demand for broker-led solutions and broader product choice.
“Broker continues to be an important growth channel for us,” Burton said. “As we continue to expand nationally, we’re focused on building strong broker relationships and ensuring our offering is competitive, accessible and aligned to the needs of customers both locally and across Australia.”
The funding also supports ongoing investment in technology, innovation and operations, with more than $40 million already invested in FY25 to improve customer experience and efficiency.
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