ING Bank adds A$375 mln to 2013 govt-backed bonds

SYDNEY, March 8 (Reuters) - ING Bank's Australian unit has added A$375 million ($341 million) to a Feb. 11, 2013 bond issue backed by an Australian government guarantee, according to government Website www.guaranteescheme.gov.au.

The increase, which brings the issue size to A$1.875 million, paid around 20 basis points over BBSW, a source who has seen the terms said.

RBC Capital Market arranged the placement, according to another source familiar with the issue.

The initial offer, completed in July, paid 55 bps.

ING declined to comment.

Australian banks have been keen users of a government guarantee put in place late 2008 to help them weather the global credit crisis.

But the Labor government announced last month it would end the scheme at the end of March as market conditions had stabilised.

This is the fifth government-guaranteed issue since the expiry announcement.
(Reporting by Cecile Lefort; Editing by Balazs Koranyi)
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