Accordingly, ANB will not be permitted to redeem the NZ$500 million of |
mandatory convertible perpetual subordinated securities (Capital Notes) under |
ticker code ANBHB on the Optional Exchange Date (25 May 2020). |
|
The RBNZ's decision does not affect ANB's ability to pay interest on the |
Capital Notes. Interest is scheduled to be paid quarterly in arrears, is |
subject to ANB's discretion and other conditions as set out in the investment |
statement, and is non-cumulative. |
|
The terms of the Capital Notes also provide for their conversion into |
ordinary shares of Australia and New Zealand Banking Group Limited (listed on |
the NZX and ASX) in May 2020 or May 2022 (conversion is subject to certain |
conditions as set out in the investment statement of the Capital Notes). |
|
ANB's capital position remains strong, with total capital of $13.4 billion, |
or 13.6% of risk weighted assets at 31 December 20191. ANB's total capital |
increased by approximately $1.6 billion between 1 October 2018 and 31 |
December 20191. |
|
ANB acknowledges the steps the RBNZ is taking to promote market liquidity and |
stability, the flow of funding to the economy and this measure to maintain |
the banking system's capital position during the COVID-19 pandemic. |