Major bank raises $1.7bn of capital

By Francesca Krakue

29 September 2016

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One of the big four banks has completed and upsized its capital notes, raising almost $1.7 billion of additional capital.

In a trading update to the ASX on Tuesday, ANZ announced that it had completed and upsized its offer of ANZ Capital Notes (ANZPG), raising $1.622 billion of additional Tier 1 Capital.

ANZ elaborated that 16.22 million of its Capital Notes 4 were issued at $100 each, and this included approximately $900 million of CPS2 (Convertible Preference Shares), which have been reinvested in the notes.

“The notes are expected to commence trading on ASX on a deferred settlement basis tomorrow at approximately 12pm (AET) under the ASX code of ‘ANZPG’,” the bank said.

The bank added: “Trading is expected to commence on a normal settlement basis on 5 October 2016.”

ANZ also explained that the distribution rate for the first distribution period from (and including) the issue date of 27 September 2016 to (but excluding) the first distribution payment date is 4.5115 per cent, with the first distribution payment date expected to be 20 December 2016.