ANZ Banking Group Ltd
(ASX:ANZ) is to offer convertible preference shares to raise $750 million with the ability to raise more or less.
The bank says the offer forms part of its diversified capital management strategy and follows reductions in Tier 1 capital following hybrid capital redemptions and notices of redemption totaling about $1 billion in the past six months.
ANZ says prior to this offer, hybrid capital made up around 14 per cent of the bank’s Net Tier 1 capital compared to the 25 per cent maximum imposed by the Australian Prudential Regulatory Authority.
The bank says it will have the ability to increase or reduce the size of the offer.
ANZ says it has applied for the convertible shares to be quoted on the ASX under the code of ANZPA.
The offer will open on November 18, open to all Australian resident holders, and is scheduled to close on December 10.
ANZ’s profits have fallen over the last couple of years.
