Open to Australian investors; expected margin of between 3.6% and 3.8% p.a. above bank bill swap rate
ANZ announced that it intends to issue ANZ Capital Notes 3 to raise A$750 million with the ability to increase or decrease the size of the offer.
The offer is expected to open on 5 February 2015 and forms part of ANZ’s ongoing capital management strategy. ANZ will use the proceeds of the offer for general corporate purposes.
ANZ Capital Notes 3 will constitute Basel III-compliant Additional Tier 1 Capital under the Australian Prudential Regulation Authority’s (APRA) current capital adequacy standards.
ANZ Securities, Citi, Commonwealth Bank of Australia, Goldman Sachs, J.P. Morgan, Morgans, Morgan Stanley and UBS have been appointed as Joint Lead Managers, and Bell Potter, JBWere and Ord Minnett have been appointed as Co-Managers on the transaction.
See below for the key features of ANZ Capital Notes 3.
ANZ Capital Notes 3 Offer Structure
The Offer comprises:
- an ANZ Securityholder Offer, a priority offer open to Australian resident holders of:
- ANZ Ordinary Shares;
- Convertible Preference Shares issued by ANZ in December 2009 (CPS2) and September 2011 (CPS3);
- ANZ Subordinated Notes issued in March 2012; or
- ANZ Capital Notes issued in August 2013 (CN1) and March 2014 (CN2),
who were on the Register for those securities at 7.00pm (AEDT) on 31 December 2014;
- a General Offer, open to Australian residents;
- a Broker Firm Offer, open to retail clients of Syndicate Brokers invited to participate through the Broker Firm Offer; and
- an Institutional Offer, open to investors that have been invited by ANZ Securities to bid for ANZ Capital Notes 3 through the Institutional Offer.
If there is excess demand for ANZ Capital Notes 3, priority will be given to ANZ Securityholder Applicants over Applicants under the General Offer in the allocation of ANZ Capital Notes 3.
The closing date for the ANZ Securityholder Offer and General Offer is scheduled to be at 5:00pm (AEDT) on Thursday 26 February 2015. The Broker Firm Offer is scheduled to close at 10:00am (AEDT) on Friday 4 March 2015.
Shareholder approval is not required for the issue of ANZ Capital Notes 3.