April 2015

More on BEN CPS3

Bendigo and Adelaide Bank’s new CPS issue incorporates a rollover offer for the BENPB step up hybrid. The new issue is typical of recent Basel III hybrids with an expected cash repayment date of June 2021 and mandatory conversion date of June 2023. BENPB holders who do not rollover are to be paid out at face value in June 2014. The new CPS has a margin range of 4.00%-4.20%. The chart shows the spread of Bendigo OTC bond and hybrid margins. The BENPE margin has moved since the issue new issue announced as shown in the Chart 2. Chart 3 shows the new issue relevant to the overall sector.