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ANZ Subordinated Notes Offer

Opportunity to invest in unsecured, subordinated debt obligations of ANZ - Applications now open

On 21 February 2012, ANZ released a replacement offer document for the issue of ANZ Subordinated Notes to raise $1.5 billion with the ability to increase or decrease the size of the offer. On 20 February 2012, ANZ announced that following strong investor demand for its offer of ANZ Subordinated Notes, ANZ will allocate $1.5 billion under the Bookbuild with the Margin for the proposed issue set at 2.75% p.a.

ANZ Subordinated Notes key points

  • Opportunity for retail investors to access a simple investment with regular quarterly interest payments.
  • The maturity date of the ANZ Subordinated Notes is 20 June 2022, but ANZ may redeem the Notes on 20 June 2017.
  • Anticipated Interest Rate for the first quarterly Interest Period to be in excess of 7.00% p.a. and calculated as described below.
  • Redemption can only be made by way of cash payment. There is no mechanism or trigger to convert ANZ Subordinated Notes into ANZ ordinary shares.
  • ANZ will apply for ANZ Subordinated Notes to be quoted on the Australian Securities Exchange (ASX).

Key features of ANZ Subordinated Notes

  • ANZ Subordinated Notes are issued by ANZ with a maturity of 20 June 2022 (10.25 years) unless redeemed earlier by ANZ.
  • ANZ may redeem all ANZ Subordinated Notes on 20 June 2017, or on an Interest Payment Date for certain taxation reasons, subject to obtaining the prior written approval of APRA.
  • Interest will be paid quarterly in arrears fully in cash. Interest payments are not subject to ANZ’s discretion (unless ANZ is not Solvent at the time the payment is due or will not be Solvent immediately after making the payment, in which case the payment will not be made).
  • Anticipate an Interest Rate of approximately 7.00% p.a. based on an assumed Bank Bill Rate of 4.25% p.a. plus a fixed Margin of 2.75% p.a.1
    • The interest rate is the sum of the Bank Bill Rate on the first business day of the relevant interest period and the Margin and is calculated on a quarterly basis.
    • The Bank Bill Rate is a floating rate of interest and is determined on the first business day of each quarterly interest period.
  • On a winding up of ANZ, ANZ Subordinated Notes rank for payment behind all Unsubordinated Creditors, equally with any other equally ranking instruments, ahead of all preference shares currently on issue and ahead of ANZ ordinary shares.

Key dates associated with the Offer

  • Offer opens – 21 February 2012
  • Closing Date for General Offer – 5:00pm (AEDT), 13 March 2012
  • Closing Date for Broker Firm Offer and Institutional Offer – 19 March 2012

Full details of the key dates and features of the ANZ Subordinated Notes Offer are set out in the Offer Document.

What you should do

To apply for ANZ Subordinated Notes you will need to complete the Application Form attached to the Offer Document or apply online as the Offer Period is now open.

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