ANZ To Raise $750 Million

Post by NeilMc on November 10, 2009 · Under Business News, Capital Markets, Company News, banking · Comment

ANZ, says it intends to raise a further $750 million in tier one capital through the issuance of convertible preference shares.

The lender says that the issuance is part of its diversified capital management strategy, and is as a result of a fall in its tier one capital, after the company experienced hybrid capital redemptions and notices of redemptions, valued at $1 billion over the last six months.

Prior to the issuance of the convertible preference shares, 14 per cent of ANZ’s tier one capital was made up of hybrid capital. The Australian Prudential Regulatory Authority (APRA), has imposed a 25 per cent ceiling.

ANZ said it would have the ability to increase or reduce the size of the offer.

ANZ says the issue will be listed and has applied for it to be quoted on the ASX under the code ANZPA.

The new shares will convert to ordinary shares on December 15, 2016.

The offer will open on November 18, and will be open to all Australian resident holders of ANZ’s ordinary shares or convertible preference shares issued in September 2008.

The offer is scheduled to close on December 10, and the new shares are expected to commence trading on December 18.

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