The Bank of Queensland has joined the latest rush to issue hybrid securities before the end of the year.
BOQ has launched a $300 million raise through its offer of Capital Notes 3. The bank says the funds raised will be used for general funding and corporate purposes.
The margin will be determined by the bookbuild but is expected to be in the range of 3.4% to 3.6%.
Under the Design and Distribution Obligations Regime, BOQ security holders will not receive a specific offer. All applications must be received through a syndicate broker.
BOQ may consider redeeming the BOQ 2017 Wholesale Capital Notes on 28 November 2022.
The closing date for BOQ Capital Notes 3 is expected to be 9 November 2022. They are expected to trade on the ASX under code BOQPG, and are expected to commence trading on 15 November.
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The first quarterly distribution Payment Date is 15 March 2023 and a scheduled mandatory conversion date of 16 June 2031.
Last week, Commonwealth Bank of Australia successfully completed its bookbuild for CommBank PERLS XV Capital Notes, allocating $1.77 billion on a firm basis with the margin being set at 2.85% per annum – the lower end of its expected margin. At launch, CBA said it was looking to raise $750 million.
Insurance Australia Group is expected to launch a hybrid securities raising this week, with ANZ perhaps also to round out the current round.
