The proceeds from the capital notes will further strengthen the AMP group’s capital base and meet general funding requirements, including funding additional tier 1 capital of one or more APRA regulated entities within the AMP group.

The issuance, along with the AMP Wholesale Capital Notes issued earlier in the year, are in anticipation of the loss of transitional arrangements on the existing A$600million AXA Subordinated Notes as regulatory capital in March 2016.

Trading on ASX

Capital notes were issued today, 30 November 2015, and are expected to begin trading on a deferred settlement basis on the ASX at approximately 10.00am (Sydney time) on 1 December 2015 under the ASX code ‘AMPPA’. Trading on a normal settlement basis is expected to commence on 4 December 2015.

Allocation policy

All valid applications received under the securityholder and general offer were accepted in full.

Allocations to syndicate brokers and institutional investors were determined under the bookbuild completed on 29 October 2015.

Securityholder offer and general offer applicants can confirm their allocations for capital notes by calling the information line (details below). Broker firm offer applicants can confirm their allocations with their broker.

The basis for allocations is described in the attached advertisements, which will be advertised tomorrow, 1 December 2015, in The Australian and The Australian Financial Review.

Holding statements and refund cheques

CHESS confirmations and issuer sponsored holding statements stating the number of capital notes issued to each successful applicant will be sent to holders by 3 December 2015. Any refunds are also expected to be sent by this date.

All successful applicants are responsible for determining and confirming the number of capital notes allocated to them prior to selling any capital notes. Applicants who sell capital notes before receiving their CHESS confirmation or issuer sponsored holding statement do so at their own risk.

Distribution rate and first distribution payment date

The first distribution payment is expected to be $1.6724 per capital note and is expected to be paid on 22 March 2016.

The indicative distribution rate for the first distribution period ending on 22 March 2016 is 5.4021 per cent per annum. This will be determined under the terms as follows:

• bank bill rate (90 day bank bill swap rate on 30 November 2015): 2.27 per cent per annum
• plus margin: 5.10 per cent per annum
• indicative franking adjustment factor of 0.732984 per cent[1]
• indicative distribution rate: 5.4021 per cent per annum

The interest payment covers a period of 113 days from 30 November 2015 to (but excluding) 22 March 2016.

Conversion following a non-viability event

For the purposes of conversion following a non-viability event, the issue date volume weighted average price (issue date VWAP) has been calculated as A$5.78. The maximum conversion number based on the issue date VWAP of $5.78 is 86.5052 AMP shares per capital note.

Participation by AMP directors and their associates

AMP advises that no capital notes were issued to AMP directors and their associates.

Holders of capital notes

Included below is a statement setting out the names of the 20 largest holders of capital notes, the number and percentage of capital notes held by those holders and a distribution schedule of the numbers of holders of the capital notes.

Tax ruling

As noted in the prospectus, AMP applied for a class ruling to confirm the Australian tax consequences for certain holders of capital notes. The ATO class ruling is available at law.ato.gov.au by following the links to class rulings.

[1] The actual distribution rate may vary, depending on the franking adjustment factor at 22 March 2016, as outlined in the prospectus.

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