ANZ Banking Group Announces EUR 37.06 Interest Payment on EUR 1 Billion Subordinated Notes Due 2035

Overview of ANZ's Subordinated Notes Programme and Capital Structure

Australia and New Zealand Banking Group Limited is a leading Australian financial institution managing a significant portfolio of debt securities as part of its capital management strategy. The EUR 1 billion 3.7057% Fixed Rate Subordinated Notes due July 2035 are part of ANZ's subordinated debt instruments, which contribute to the bank's regulatory capital under Basel III and Australian Prudential Regulation Authority (APRA) standards.

Subordinated notes rank below senior unsecured debt but above equity in insolvency scenarios, providing ANZ with flexible capital funding and investors with a fixed income stream backed by the bank's balance sheet. The announcement did not disclose the total subordinated debt programme size or the proportion represented by this specific security.

Fixed Interest Rate and Payment Calculation Details

The notes carry a fixed interest rate of 3.7057% per annum, set at issuance and maintained until maturity in July 2035. This fixed rate offers holders predictable annual income, unlike floating-rate instruments tied to benchmarks like BBSW or EURIBOR. The payment period for this interest runs from July 31, 2025, to July 30, 2026, spanning 365 days calculated on an Actual/Actual (ICMA) basis.

Interest is calculated by applying the 3.7057% annual rate to the EUR 1,000 calculation amount multiplied by the day count fraction (365/365), resulting in EUR 37.06 per calculation amount. Payments to investors holding multiples of EUR 1,000 will be proportional, following the security's governing documents.

Payment Date, Record Date, and Ex-Interest Trading Information

The record date for this interest payment is Thursday, July 30, 2026, with payment scheduled for Friday, July 31, 2026. This timing complies with ASX Listing Rules requiring the record date to be at least four business days after the market notification, ensuring proper processing and settlement.

The ex-interest date is one business day before the record date, so securities will trade ex-interest from July 29, 2026. Purchasers after this date are not entitled to the upcoming interest payment, which accrues to holders as of the record date. This standard practice distinguishes "cum-interest" from "ex-interest" trades. Neither the record date nor ex date can be changed after 12 noon Sydney time on the day before the prior ex date advised.

Currency Denomination and AUD Equivalent Disclosure

The subordinated notes and interest payments are denominated in Euros (EUR), reflecting ANZ's international capital market funding strategy. This EUR 1 billion issuance diversifies funding sources and appeals to investors seeking eurozone currency exposure. Foreign currency issuance is common among major Australian banks to manage asset-liability profiles and reduce domestic funding reliance.

While an AUD equivalent for the interest payment is typically published by ASX using the Reserve Bank of Australia exchange rate from the day before the ex date, ANZ did not provide this figure in the announcement. ASX will calculate and publish the AUD equivalent using the RBA rate on Wednesday, July 29, 2026, ensuring transparency for Australian investors.

Regulatory Compliance and Approval Status

ANZ lodged this announcement with ASX on Thursday, July 23, 2026, using the Appendix 3A.2 notification template mandated by ASX Listing Rules for interest payments on quoted debt securities. No security holder or court approvals were required prior to the payment date, indicating the payment is a contractual obligation under the subordinated notes' terms.

This notification fulfills ANZ's continuous disclosure obligations, providing market participants with equal access to material information regarding payment details, record dates, and ex-interest arrangements. The structured ASX form creates an auditable record supporting transparency and integrity in Australia's debt securities market.

Investor Considerations for ANZ's Subordinated Debt

Investors should monitor regulatory capital requirements from APRA, which may impact ANZ's future subordinated debt issuance, redemption, or restructuring. Changes in ANZ's credit rating, profitability, or regulatory status could affect these notes' secondary market value. The notes mature in July 2035, about nine years from this announcement, with potential embedded call options or contractual rights not disclosed here.

Interest rate trends in the eurozone and EUR/AUD currency fluctuations may influence the attractiveness and valuation of these fixed-rate notes. The announcement did not reveal plans for additional subordinated debt issuance, refinancing, or capital structure changes.

ANZ's Position in Australian Banking and Global Capital Markets

Australia and New Zealand Banking Group Limited is one of Australia's "Big Four" banks, alongside Commonwealth Bank, Westpac, and NAB. ANZ operates across retail, business, institutional banking, and asset management in Australia, New Zealand, and the Asia-Pacific. Its capital management, including subordinated note issuance, supports regulatory capital ratios, business growth, and shareholder returns.

This EUR 1 billion international debt issuance underscores ANZ's global capital market presence and ability to attract institutional investors worldwide. Accessing eurozone markets diversifies funding beyond domestic sources and reduces geographic concentration risk, aligning with practices of other large, internationally active banks in a competitive global banking environment.