ANZ’s latest hybrid security offering has had its margin set at the lower end of the indicative range after the early close of a book-build process. The margin on ANZ Capital Notes 4 has been set at 4.70% and, when added to the current 90 day bank bill swap rate (BBSW) of 1.75%, investors will receive an initial 6.45% pa, inclusive of franking credits. The actual amount of income investors receive over time is subject to changes in the BBSW rate each quarter, which tends to follow the official cash rate closely (see below).
The book-build was closed earlier than scheduled the 26 August date. $1.3 billion of hybrids have been allocated to institutions and stockbrokers’ clients but the final numbers will be dependent on the number of securities allocated under the Re-investment Offer and Securityholder Offer. The first distribution will be paid on 20 December 2016 and the amount will be based on the 90 day BBSW rate on the first business day of each payment period.
