More New Hybrids Issued – BEN and BOQ

More New Hybrids Issued – BEN and BOQ

Last week, Bendigo and Adelaide Bank launched a new hybrid seeking to raise $350 million. The proceeds will be used for the redemption of BEN’s convertible preference shares.

The notes have a call date of 15 June 2027 and a mandatory exchange date on 15 June 2029. The deal is being marketed at 380-400 basis points over three-month bank bills, with the final margin to be determined on 4 November following a bookbuild.

Encouragingly, Bank of Queensland launched an additional Tier 1 hybrid, Capital Notes 2, aiming to raise $200 million, this was upsized to $250 million and priced at the lower end of the range at 380 basis points over 3-month BBSW.

Along with Westpac’s FY20 results this morning, it announced it is “considering the offer of new ASX listed Additional Tier 1 capital securities.  A transaction may follow, subject to market conditions”.




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