Westpac’s new Tier 2 debt deal was today priced at BBS + 310bps. The deal is Basel 3 compliant and expected to be rated BBB+ (stable) by S&P and A3 (stable) by Moody’s. Maturity is 10 years (10 Mar 2026) with a non-call period of 5 years.
Westpac to launch new Tier 2 deal
25 February 2016
Westpac Banking Corporation has launched a new AUD Basel 3 compliant Tier 2 transaction. Basel 3 compliance indicates the securities will have either “non-viability” or “common equity” trigger clauses which effectively convert the debt to equity in the event of financial distress. The expected benchmark 10-year non-call 5-year transaction will be offered to wholesale investors and is expected to be priced in the coming days.