The notes are intended to raise $1 billion, though ANZ maintains the ability to increase or decrease the offer size.
ANZ said the notes will have a face value of $100, with the minimum application being for 50 notes, and with subsequent notes to be issued in multiples of 10.
All notes have a mandatory conversion date of 20 March 2026, at which point they will be converted to ordinary shares, although optional conversion or redemption is possible at 20 March 2024.
ANZ expects the notes to pay fully franked distributions quarterly, based off the 90-day bank bill swap rate, with the expected margin sitting between 4.70 per cent and 4.90 per cent.
The ASX has classified the notes as “equity securities” and “convertible debt securities” which, according to ANZ, can be traded on a deferred settlement basis for a “short time” after their issue.
ANZ’s announcement comes roughly a month after NAB finalised its Capital Notes 2 offer, which successfully raised $1.5 billion in capital for the bank.
AMP names incoming chief risk officer
Antares Equities hires new director
Former AFA CEO appointed to boutique board
Warning lights flashing on Aussie equities
What’s in store for the economy in 2018?
Busting common passive investing myths