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Westpac considering issuance of subordinated notes

WestpacBanking Corp. is considering issuing unsecured subordinatedfixed-rate notes.

The bank said July 21 that if the issuance proceeds, it willlikely be conducted in August and will only be open to investors in NewZealand.

The notes are expected to have a term of 10 years and willbe treated as Tier 2 capital for Westpac. The notes areconvertible into ordinary 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 have been appointed as other joint lead managers, while JBWereand Macquarie Equities have been appointed as co-managers.