ANZ raises $1.25bn in convertible shares
(31 August 2011 – Australia) ANZ Bank raised A$1.25 billion from its hybrid share offer of convertible preference shares (CPS3) due to "strong investor demand".
ANZ last week said it would 'test' demand for CPS3, as opposed to standard shares, via a raising of A$750 million, as part of its strategy to manage the timing of the redemption of subordinated debt and its focus on the strength of its capital position, but left the door open to increasing the capital raising.
'We are very pleased with the investor response to this new-style hybrid capital offer, which has allowed us to substantially increase the size of the issue,' said ANZ chief financial officer Peter Marriott.
The shareholder and general offer opens tomorrow, and ANZ will apply for CPS3 to be quoted on the Australian Securities Exchange.
Dividends on CPS3 are scheduled to be paid semi-annually in arrears, with the dividend rate to be calculated on a semi-annual basis from the 180-day bank bill rate plus a margin, which ANZ today would be 3.10 percent.
'We are very pleased with the investor response to this new-style hybrid capital offer, which has allowed us to substantially increase the size of the issue,' said ANZ chief financial officer Peter Marriott.
The shareholder and general offer opens tomorrow, and ANZ will apply for CPS3 to be quoted on the Australian Securities Exchange.
Dividends on CPS3 are scheduled to be paid semi-annually in arrears, with the dividend rate to be calculated on a semi-annual basis from the 180-day bank bill rate plus a margin, which ANZ today would be 3.10 percent.
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