Strategy
ANZ Seeks To Raise Almost $1 Billion Through Debt Issuance
Australian bank ANZ sells Capital Notes 2 shares to raise A$1 billion.
Australia and New Zealand Bank, one of the Australia's "Big Four" banks, has announced plans to raise A$1 billion (approx $903 billion) through an issuance of shares.
The sale, open to Australian investors, involves the issuance of ANZ Capital Notes 2 and will open on 19 February 2014. It forms part of the bank's ongoing capital management strategy, it said in a statement, with the proceeds of the latest endeavour to be used for the refinancing of the convertible preference shares it released in September 2008 (CPS1) and for "general corporate purposes."
ANZ Capital Notes 2 will constitute Basel-III compliant additional Tier 1 capital under the Australian Prudential Regulation Authority's current capital adequacy standards. ANZ Securities, Goldman Sachs, JP Morgan, Morgans, Morgan Stanley, UBS and Westpac Institutional Bank have been appointed as joint lead managers.
The capital raising effort comes as ANZ is seeking to boost efficiency, especially after posted a 13 per cent rise in cash profit in the three months to 31 December 2013 to A$1.73 billion ($1.55 billion).
