WestpacBanking Corp. plans to issue up to NZ$250 million of unsecured, subordinated,fixed-rate notes.
The bank said July 26 that the 10-year notes will be repaid Sept.1, 2026, but it has the option to repay them from Sept. 1, 2021, or earlier.The interest rate will be the sum of the New Zealand five-year swap rate on therate set date and the margin.
The indicative margin range for the notes is 2.60% to 2.80%per year.
The offering, which is only open to investors in NewZealand, will open Aug. 5 and is expected to close Aug 26. The notes willqualify as Tier 2 capital for the bank. They are convertible intoordinary shares if a nonviability trigger event occurs.
Westpac's New Zealand branch is the arranger and joint leadmanager for the offering. BNZ, Deutsche Craigs, First NZ Capital, Forsyth Barrand Macquarie are also joint lead managers, while JBWere and Macquarie Equitieswill act as co-managers.
As of July 25, US$1was equivalent to NZ$1.43.