Westpac Capital Notes Issue

Westpac Bank has announced plans to issue a new subordinated capital note - more details early next week. Interest rate may be around 6.50%.
They are expected to have a credit rating of A- from Standard and Poor's.
These will have a set maturity date of 10.5 years; however, Westpac will have the option of repaying these notes under certain conditions after 5.5 years.

I'd like a bit higher rate for Tier 2 capital (unsecured-subordinated) but have done okay in the past with similar issues from ANZ.
Will be interesting to see the final terms when they are released this week.

Last year’s issue WNZ1T2 at 6.19% interest rate have done OK considering that interest rates have gone up over the past year. $600m were issued I think.

This one is $100 million-or as much as they want.....

'Westpac New Zealand Limited (WNZL) is considering making an offer of up to NZ$100 million (with the ability to accept unlimited oversubscriptions at WNZL’s discretion) of unsecured subordinated notes (Notes).'

600million have been allocated to brokers. I applied for $7000 hope to not be scaled back.

Rate set at 6.73%.
I got the amount I applied for, so I doubt you'll be scaled.

Quote:

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Originally Posted by Grimy

Rate set at 6.73%.
I got the amount I applied for, so I doubt you'll be scaled.

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My application through Jarden was scaled back by 10%. It must have been popular if $600m were allocated in the end.