Westpac Banking Corporation has announced the offer of Westpac Capital Notes 8 which is a new additional Tier 1 capital instrument.
The bank is looking to raise AUD$1billion which will help it maintain its requirements under the APRA capital adequacy framework.
The offer opening date is 25 August 2021 and will close on 9 September 2021 (if not earlier). Westpac Capital Notes 8 are expected to trade on the ASX under the code WBCPK.
The margin will be determined by a bookbuild, and is expected to be between 2.90% and 3.10% per annum over the 3-month BBSW rate. The final margin will be announced on 24 August 2021.
The offer includes:
- A reinvestment offer for eligible Westpac Capital Notes 4 holder
- A securityholder offer for eligible security holders
- A broker firm offer; and
- An institutional offer. Full details.
These hybrid securities from Westpac feature a number of conversion, redemption or transfer options and are scheduled to convert into ordinary shares on 21 June 2032.
The notes are expected to be issued on September 15.
The notes have an issue price of $100 each and a minimum application of 50 Westpac Capital Notes 8 ($5,000) is required. Refer to the prospectus for full details.
Westpac raised $US2.75 billion (A$3.54 billion) of unsecured debt in the US bond market in May this year in a giant post-pandemic deal.
Westpac Institutional Bank is the arranger and lead manager of Westpac Capital Notes 8 alongside ANZ Securities, Citi, Commonwealth Bank of Australia, Morgans, National Australia Bank, Ord Minnett and Shaw and Partners.