Westpac Subordinated Notes II (ASX code: WBCHB) were issued in August 2013. They pay a floating rate of interest equivalent to 3 month BBSW + 230bps, have a first call date of 22 August 2018 and their final maturity date is on 22 August 2023.
Westpac has recently announced it will redeem all of these notes on the first (call) optional redemption date of 22 August 2018. Holders will receive the final interest payment of $1.07002 in addition to the $100.00 face value.
By the start of 2019, there will be less than ten ASX-listed notes and bonds remaining which have been issued by investment-grade companies. The redemption of Westpac’s notes will be the first of several during the latter part of 2018. Crown Notes (ASX code: CWNHA) are callable in September, Suncorp Notes (ASX code: SUNPD) are callable in November and AMP Notes (ASX code: AMPHA) will mature in December.
