The primary market for Australian hybrids has been busy lately. ANZ, Bendigo and Adelaide Bank and Suncorp have all issued new hybrids in recent months. Another one has just been announced by Bank of Queensland (BoQ) and it is likely to be the last hybrid securities new issue of 2017. It already has a hybrid listed on the ASX (ASX code: BOQPD) and the new issue is ostensibly to replace the existing one as the optional exchange date approaches next April.
BoQ plans to issue $300 million worth of Capital Notes (ASX code: BOQPE), with the ability to raise more or less than this amount. The new securities will be perpetual, convertible, subordinated, unsecured notes and the proceeds will be used for the partial refinancing of BoQ’s convertible preference shares (CPS) as well as ongoing funding and other general purposes.
