Regional lender Bank of Queensland Ltd
(ASX:BOQ) has agreed to issue $150 million of Lower Tier 2 Convertible Notes as a private placement.
CEO David Liddy reinforced that this placement is an important step for the bank in ensuring strong capital levels remain while also helping to fund the bank’s future growth.
Mr Liddy says this convertible notes issue will assist Bank of QLD to fully capitalise on growth opportunities that the company anticipates will progressively unfold over the next few years.
The bank says the convertible notes are to be issued in three tranches of $60 million, the second of $45 million and the third tranche also of $45 million.
The tranches are cumulative, convertible, subordinated notes due June 2020, and pay a monthly coupon equal to the 30 day bank bill rate plus 400 points.
Bank of Queensland reported profit of $141.1 million for the 12 months to August 30, 2009.
