SYDNEY, Nov 18 (Reuters) - Australia and New Zealand Banking Group Ltd has more than doubled the size of a convertible preference share issue to A$ 1.7 billion Australian dollars ($1.58 billion) after strong demand from investors.
ANZ will issue approximately 17 million convertible preference shares at A$100 each at a margin of 3.1 percent, it said in a release. The preference shares will convert into ordinary shares in December 2016.
It said last week it had intended to raise A$750 million in the hybrid offer to help replenish some of the about A$1 billion worth of hybrid capital redeemed in the past six months, leaving scope to increase or decrease the offer size.
The issue will qualify as Tier 1 capital, which is the core capital of a bank and is commonly used by regulators to assess banks' capital adequacy.
Banks are required to maintain Tier-1 capital as a buffer to protect bank deposits and may opt to keep even higher ratios should they consider acquisitions or if they anticipate a rise in non-performing loans.
Analysts expect more hybrid issues from Australia's other top banks before the end of the year.
ANZ, Commonwealth Bank, Deutsche Bank, Goldman Sachs, Macquarie Group, Morgan Stanley, Westpac and UBS are the joint lead managers to the offer.
(Reporting by Morag MacKinnon)
((morag.mackinnon@thomsonreuters.com;+61 2 9373 1815)) ($1=1.074 Australian Dollar) Keywords: ANZ/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
ANZ will issue approximately 17 million convertible preference shares at A$100 each at a margin of 3.1 percent, it said in a release. The preference shares will convert into ordinary shares in December 2016.
It said last week it had intended to raise A$750 million in the hybrid offer to help replenish some of the about A$1 billion worth of hybrid capital redeemed in the past six months, leaving scope to increase or decrease the offer size.
The issue will qualify as Tier 1 capital, which is the core capital of a bank and is commonly used by regulators to assess banks' capital adequacy.
Banks are required to maintain Tier-1 capital as a buffer to protect bank deposits and may opt to keep even higher ratios should they consider acquisitions or if they anticipate a rise in non-performing loans.
Analysts expect more hybrid issues from Australia's other top banks before the end of the year.
ANZ, Commonwealth Bank, Deutsche Bank, Goldman Sachs, Macquarie Group, Morgan Stanley, Westpac and UBS are the joint lead managers to the offer.
(Reporting by Morag MacKinnon)
((morag.mackinnon@thomsonreuters.com;+61 2 9373 1815)) ($1=1.074 Australian Dollar) Keywords: ANZ/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.