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New ANZ Capital Notes 2

by Tony Perkins | Feb 11, 2014

Yesterday, ANZ announced its intention to issue new Capital Notes to raise fresh Tier 1 capital as well as replace the existing ANZ Capital Notes 1 (ANZPB) which are eligible for call or mandatory conversion in June 2014.

ANZ Capital Notes 2 will be fully paid, convertible, redeemable, transferable, non cumulative, perpetual, unsecured and subordinated Australian Dollar Notes. ANZ wants to raise $1bn but has stated the offer may be more or less depending on demand.  Capital Notes 2 includes the new Basel III compliant non viability provision as well as the Common Equity Tier 1 trigger where the notes convert to equity should common equity fall below 5.125%.

Capital Notes 2 will be offered to retail and wholesale investors and be listed on the ASX. Capital Notes 2 will not have a definite maturity, but like the ANZPBs, subject to certain provisions, ANZ can redeem the Capital Notes 2 after 8 years and mandatorily convert the Notes to ANZ ordinary shares after 10 years, subject to certain provisions.

Interest will be floating with an indicative rate of between 3.25% and 3.40% (inclusive of franking credits) per annum.

FIIG is participating in the Broker Firm Offer. Tier 1 Notes are available to wholesale and retail clients (pursuant to the Corporations Act C’th 2001), with an initial minimum subscription of $50,000 and multiples of $10,000 thereafter.

To read more, please click here  for the prospectus. If you are interested in participating in the offer, please contact your FIIG representative.