Westpac announced the results of its book-build process and in doing so increased the offer size to $1.25bn from the previously indicated amount of $750m. The margin above BBSW to be paid to holders came in at the bottom of the 4.00% to 4.20% indicative range. This is not surprising given the strong demand for the offer and the increased issue size. The offer is scheduled to close on 1 September but may well be closed early. The initial yield will be around 6.14%pa (approx. 2.14% for BBSW and plus the 400bps margin). The yield is pre-tax and includes franking credits. The actual yield will be reset each quarter as the BBSW rate rises and falls but the margin will remain 400bps above BBSW.
