SYDNEY: Australia and New Zealand banking group has announced plans to issue $750 million of capital notes in what is likely to be the first ASX listed hybrid of 2015.
But the bank is being forced to pay up to 1 per cent more to issue this form of capital following a blow-out in margins that followed an enormous $3 billion issue by the Commonwealth Bank in August 2014 that investors couldn’t absorb.
ANZ is set to sneak in ahead of National Australia Bank which revealed its intentions late last year to issue a hybrid security following a scheduled trading update in early February.
The lender said on Friday it would launch an offer of “Capital Notes 3” on February 5th – with the intention of raising about $750 million. The major banks typically target issuance sizes well in excess of $1 billion.
