Judo Bank shares drop as it announces $75m notes offer

The news: Judo Bank is aiming to raise $75 million through a capital notes offering to boost and diversify capital.

The numbers: The neobank's shares were trading 2.4% lower at $0.825 at 11:50am AEDT. In a media release, Judo emphasised it already held elevated levels of capital, with a CET1 ratio of 16.7%, well above the 4.5% required by the Australian Prudential Regulation Authority. The margin on the notes to be determined after the bookbuild is expected to be between 6.25% and 6.5%.

The context: Judo flagged the offering in its full-year results in August, as part of its broader capital management strategy.