In a statement released yesterday, Macquarie chief financial officer Patrick Upfold said the BCN offer is consistent with Macquarie’s strategy to manage its capital mix and “maintain a diverse source of funding”.
“Macquarie continues to have a strong balance sheet with well diversified funding sources and minimal reliance on short-term wholesale funding markets,” Mr Upfold said.
Macquarie also said the offer – which was made under a prospectus lodged with ASIC and the ASX yesterday – will only be available to investors residing in Australia and to “certain institutional investors”.
“BCN are fully paid, unsecured, subordinated, non-cumulative, mandatorily convertible notes issued by [Macquarie Bank] at an issue price of $100 per BCN,” a statement from Macquarie said.
“Distributions are scheduled to be paid semi-annually in arrears, subject to certain payment conditions,” it said. “BCN will qualify as additional tier 1 capital of [Macquarie Bank] for APRA purposes.”
The offer is expected to open on 23 September and will consist of a broker firm offer, a security holder offer and a general offer to members of the general public who are residing in Australia.
“Anyone who wants to invest in BCN will need to contact their Syndicate Broker (to apply under the broker firm offer) or complete the online application form (to apply under the security holder offer or general offer) when the BCN Offer opens,” a statement from Macquarie said.
