ANZ Convertible Preference Shares
Print


Overview:
CPS are fully paid preference shares issued by ANZ, which will Mandatorily convert into Ordinary Shares (subject to certain conditions being satisfied) unless the Mandatory Conversion Conditions are not satisfied or ANZ elects for a third party to purchase the CPS. The Offer is being made as part of ANZ's ongoing capital management strategy, with the CPS proceeds being used for ANZ's general corporate purposes.


Summary Features
Dividends
  • Dividends are preferred, non-cumulative, floating rate, expected to be fully franked and paid quarterly in arrears, subject to the Payment Tests.
  • If any Dividend is not franked or only partially franked, ANZ will increase the amount of the Dividend to fully compensate for the unfranked component, subject to the Payment Tests.
  • Dividends are non-cumulative. If a Dividend or part of a Dividend is not paid on a Dividend Payment Date, CPS Holders have no claim or entitlement in respect of non-payment, nor any right to receive that Dividend at any later time (however, the Distribution Restriction may apply in this scenario).
Margin
  • The Margin is fixed at 2.5% over the 90 day bank bill rate.
Mandatory Conversion
  • The Mandatory Conversion Conditions provide protection to CPS Holders from receiving less than $102.56 worth of Ordinary Shares per CPS on Conversion (unless the Mandatory Conversion Conditions are not satisfied or ANZ elects for a third party to purchase the CPS).
Credit Rating
  • ANZ's CPS have been assigned provisional investment grade issue credit ratings of A+ by Standard and Poor's and Aa3 by Moody's.
  • ANZ has recently had its own credit ratings confirmed by Standard and Poor's (of AA) and Moody's (Aa1)
Liquidity
  • ANZ will apply for CPS to be quoted on the ASX.
Issue Price
  • ANZ CPS will have an Issue Price of $100 per CPS.
Issuer
  • Australia and New Zealand Banking Group Ltd (ABN 11 005 354 522 and Australian Financial Services Licence No. 234527).
Risks
  • An investment in CPS has associated risks. Below is a summary of the key risks only. Investors should read the Investment Risks Section of the Prospectus (Section 4) completely before deciding whether to invest in ANZ's CPS.
  • Financial market conditions and liquidity
    The market price of CPS may change due to various factors that affect financial market conditions.
  • Dividends may not be paid
    There is a risk that Dividends will not be paid. The CPS Terms contain no events of default and, accordingly, a failure to pay a scheduled Dividend on CPS will not constitute an event of default.
  • Dividends may not be fully franked
    There is no guarantee that ANZ will have sufficient franking credits in the future to fully frank Dividends. If a Dividend is unfranked or partially franked, the Dividend will be increased to fully compensate for the unfranked component, subject to the Payment Tests.
    New Zealand tax resident CPS Holders will not receive the benefit of franking credits attached to Dividends.
  • Mandatory Conversion may not occur
    CPS are expected to Convert into Ordinary Shares on the Mandatory Conversion Date. However, there is a risk that Conversion will not occur because the Mandatory Conversion Conditions are not satisfied.
  • Ranking
    CPS are issued by ANZ on the CPS Terms and CPS Holders have no claim on ANZ in respect of CPS except as provided in those CPS Terms. CPS are not secured.
  • ANZ's financial performance and position
    The market price of CPS (and the Ordinary Shares into which they are expected to Convert) may be affected by ANZ's financial performance and position.
Ranking
  • If ANZ is wound up, CPS Holders rank for payment behind all depositors, creditors and rank equal with ANZ StEPS, 2003 Trust Securities, 2004 Trust Securities, 2007 Stapled Securities and any other equal ranking instruments. On a winding-up there is a risk that CPS Holders will not receive a return of capital or payment of any Dividend which has been declared but not paid.

For full details please refer to the Prospectus



Facts
Offer
$100.00 per CPS
Offer document
Prospectus
Minimum investment
Minimum investment of $5,000 (50 CPS) with increments of $1,000 thereafter.
Expected Opening Date
28 August 2008
Expected Close Date
22 September 2008


More Information
Download:
Prospectus
Summary Term Sheet
Contact us:
For all questions in relation to the Offer, please call:

ANZ Structured Investments on 1800 204 693; or

The ANZ Shareholder Information Line:

Australia: 1800 113 399
New Zealand: 0800 174 007
International: +61 3 9415 4010

Or contact your Syndicate Broker or other professional adviser.
Important Notice:
This information has been prepared by Australia and New Zealand Banking Group Ltd ABN 11 005 354 522 and Australian Financial Services Licence No. 234527 (ANZ) and ANZ Securities Limited (ANZ Securities). ANZ holds Australian Financial Services Licence No. 234527.

The contents of this page are for your information only and you must not reproduce, distribute or publish it for any other purpose.

ANZ is the issuer of ANZ Convertible Preference Shares. This product is distributed by ANZ Securities along with other Joint Lead Managers. ANZ recommends that you read the Prospectus for this product and take appropriate legal, taxation and financial advice before deciding to acquire or hold the product.

The contents of this web page are subject to the Prospectus for this product, and are for your information only. You must not reproduce, distribute or publish this web page for any other purpose.

The information on this web page does not take into account your objectives, financial situation or needs and does not constitute investment or taxation advice or an offer or an invitation to acquire the financial products referred to on this web page. The information on this web page may change at any time and may no longer be accurate. Please check with ANZ in relation to the currency of this information.

The products referred to on this web page are only to be issued or offered to residents of Australia or New Zealand. There may also be additional restrictions. Please refer to the Prospectus.

Please note that ANZ may hold a principal position in the products referred to on this web page. Any investment by you in any product referred to on this web page is subject to investment risk, including loss of income and permanent capital loss. ANZ may receive a commission, remuneration or other benefit as result of any dealing in such product.

As a salaried employee, an ANZ Private Bank Adviser does not earn any up-front or on-going (trail) commissions, but may receive a bonus and other benefits as a result of you acquiring any financial products recommended and overall performance. ANZ Private Bank Advisers are representatives of ANZ, the holder of an Australian Financial Services Licence.

ANZ's Privacy Policy is available on request, or by visiting www.anz.com. To correct your details or remove your name from our distribution list please contact your ANZ Private Bank Adviser.