Westpac (ASX:WBC) to raise AU$750M via additional tier 1 notes, shares gain

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Westpac (ASX:WBC) to raise AU$750M via additional tier 1 notes, shares gain

Westpac (ASX:WBC)
Image source: © Sunflowerey | Megapixl.com

Highlights

  • Westpac is set to raise AU$750 million via additional tier 1 notes.
  • Following the news, shares of Westpac were trading at AU$19.61 each, up 2.19% on ASX at 11.55 AM AEST.

Australia's oldest bank Westpac Banking Corporation (ASX:WBC), today (June 21) announced the launch of Westpac Capital Notes 9 (Notes), a new Additional Tier 1 capital instrument (Offer).

Westpac added that it will not allot any Notes before securing the approval for the notes to be traded on the ASX. Westpac plans to allot the notes on 20 July 2022, assuming approval for quotation is granted.

On the back of the news, shares of Westpac were trading at AU$19.61 each, up 2.19% on ASX at 11.55 AM AEST.

More about tier 1 notes

The offer is for issuing AU$100 issue price notes to raise approximately AU$750 million, with the option to raise more or less money. For eligible Westpac Capital Notes 2 holders, the offer includes a reinvestment offer.

The offer is divided into two parts:

Image Source: © 2022 Kalkine Media ®

Data Source- Company announcement dated 21 June 2022

There is no explicit offer to Westpac security holders or a wide public offer, unlike past Westpac Capital Notes offers. Suppose you own Westpac Capital Notes 5, Westpac Capital Notes 6, Westpac Capital Notes 7, Westpac Capital Notes 8, or ordinary shares. In that case, you may be entitled to apply for Westpac Capital Notes 9 under the new money offer if you meet the qualifying criteria.

Westpac has appointed syndicate brokers like ANZ Securities Limited, Westpac Institutional Bank, Commonwealth Bank of Australia, Morgans Financial Limited, National Australia Bank Limited, Ord Minnett Limited, Shaw and Partners Limited and UBS AG, Australia Branch as joint lead managers, and Bell Potter Securities Limited, Crestone Wealth Management Limited, JBWere Limited, Morgan Stanley Wealth Management Australia Pty Limited and Wilsons Advisory and Stockbroking Limited as co-managers, to the offer.

Source: © Minyun9260 | Megapixl.com

Recent development

Last month, Westpac Banking Corporation and BT Funds Management had agreed to consolidate BT's personal and corporate superannuation funds with Mercer Super Trust through a successor fund transfer (SFT).

Westpac also announced that it had agreed to sell its Advance Asset Management business to Mercer Australia (Advance).

BT Super's personal and corporate superannuation plans are managed by Advance, a multi-manager investment organisation that offers a range of fund management services and products.

Also Read: Westpac (ASX:WBC) shares up on merging super assets, selling Advance

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