Bank hybrid issuing is set to ramp up early in 2024 with ANZ Bank expected to be the first to market.
ANZ issued a recent statement saying it is expected to announce a new ANZ Capital Notes offer in February. It said it may include a limited reinvestment offer for certain holders of ANZ Capital Notes 4 (ASX:AN3PG).
It has appointed joint lead managers including ANZ Securities, Bell Potter, CBA, E&P Corporate Advisory, Morgan Stanley, Morgans, NAB, Ord Minnett, Shaw and Partners, UBS and Westpac Institutional Bank. LGT Crestone Wealth Management has been appointed in a co-manager role.
ANZ said the offer would be limited to wholesale investors and investors receiving personal advice, who apply through a syndicate broker.
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The Australian Financial Review reported that ANZ is expected to target more than $1 billion in a hybrid issue, with sources suggesting the hybrid to offer circa 300bps margin.
Westpac was the last of the big banks in 2023 to raise capital in a hybrid issue raising $1.75 billion with the margin set at 3.10% per annum above the 3-month BBSW.