ANZ capital notes – a hybrid worth considering?

Co-founder of the Switzer Report
Print This Post A A A

ANZ is the latest borrower to tap the hybrid securities market, with an issue of $750 million of ANZ Capital Notes.

Structurally, the issue is similar to other recent raisings in the hybrid market from the major banks – Commonwealth Bank’s PERLS VI (ASX Code CBAPC), Westpac Capital Notes (WBCPD), NAB Convertible Preference Shares (NABPA) and Macquarie Capital Notes (MQGPA).  Like these earlier issues, the funds ANZ is raising will qualify as Additional Tier 1 capital.

Interestingly, the issue is a couple of years longer in term – the expected mandatory conversion date is 10 years out (rather than seven or eight years), and the issuer’s optional redemption date is eight years out (rather than five or six years).

Also from this edition