AMP’s new hybrid

AMP is sounding out investors about a new issue of listed hybrids securities. AMP already has its AMP Capital Notes 2 trading on the ASX, which were issued in 2013 and pay distributions at BBSW + 265bps but the new hybrid is thought to be priced at close to BBSW + 500 bps. At this stage there is little information to go on but it’s not far-fetched to bet it would be similar in terms to the $275m Wholesale Capital Notes issued in March at BBSW + 400bps. Those notes were perpetual, unsecured, subordinated debt obligations with a mandatory conversion date in 2020 and a “non-viability trigger event” conversion clause to give them a Basel 3 tier 1 equity status. Tasmania’s MyState Financial, issued a 10y subordinated bond in early August at Swap + 500bps.