Investor centre

Westpac Stapled Preferred Securities (Westpac SPS)

• Introduction
• What are Westpac SPS?  
• Distributions on Westpac SPS 
• Distribution payment and record dates 
• Distribution payment history
• How to treat Westpac SPS distributions in your individual tax return
• Further Enquiries
• ASX Announcements relating to the issue of Westpac SPS

Introduction

The information on this website page is for Australian residents only.

The Offer for Westpac SPS is closed. On 31 July 2008, Westpac issued 10,362,670 Westpac SPS, at an issue price of A$100 each, raising approximately A$1.04 billion.

What are Westpac SPS?  

Each Westpac SPS is a stapled security consisting of a perpetual, unsecured, non-cumulative subordinated Note issued by Westpac's New York branch stapled to a Preference Share issued by Westpac.

Westpac SPS are listed on the Australian Securities Exchange (ASX) and can be traded like any other ASX securities. If you trade your Westpac SPS before receiving your Holding Statement, you do so at your own risk. The ASX code for the Westpac SPS is "WBCPA".

It is expected that on 26 September 2013 (the Initial Mandatory Conversion Date), Westpac SPS will be either:

• Converted into Westpac ordinary shares (subject to the satisfaction of the Conversion Conditions)
• Transferred to a Nominated Party at the election of Westpac for cash, such that you will receive $100 for each Westpac SPS from the Nominated Party.

Further details on the Westpac SPS, including the complete Note Terms and Preference Share Terms, are included in the terms of the Westpac SPS. Download the Westpac SPS Prospectus for reference purposes only.

Distributions on Westpac SPS 

Westpac SPS offer holders preferred, non-cumulative and floating rate Distributions. Westpac SPS Distributions are expected to be fully franked and accordingly investors are expected to receive a combination of cash distributions and franking credits ^*. However, your ability to use franking credits will depend on your individual tax position. You should seek professional advice in respect of your individual tax position.

Distributions are calculated as follows:
(Distribution Rate x Issue Price x N) divided by 365.

The Distribution Rate is a floating rate and will be set on the first Business Day of each Distribution Period using the following formula:
(Bank Bill Rate + Margin) x (1 - Tax Rate).  

• The margin is 2.40% per annum
• the Tax Rate is the Australian corporate tax rate applicable to the franking account of Westpac as at the Distribution Payment Date expressed as a decimal in the formula, 0.30
• The issue price is $100.00 per Westpac SPS
• N = the number of days in the Distribution Period

The 90 day Bank Bill Rate will be set on the first day of each Distribution Period.

The Distribution Rate for each Distribution Period will be announced to the ASX prior to each quarterly distribution. 

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Distribution payment and record dates 

Distribution payment date	Relevant record date
2 July 2012#	22 June 2012
2 October 2012#	22 September 2012
31 December 2012	23 December 2012

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Distribution payment history

Distribution Payment Date	Distribution rate per annum	Cash amount of distribution per Westpac SPS	Number of days in the Distribution Period
2 July 2012	4.6620%*	$1.1623*	91
2 April 2012	4.7693%	$1.1891	91
3 January 2012	4.9898%	$1.2577	92
30 September 2011	5.1637%	$1.3015	92
30 June 2011	5.1018%	$1.2720	91
31 March 2011	5.1520%	$1.2704	90
31 December 2010	5.0960%	$1.2845	92
30 September 2010	5.0680%	$1.2774	92
30 June 2010	4.7728%	$1.1899	91
31 March 2010	4.5570%	$1.1236	90
31 December 2009	4.0273%	$1.0151	92
30 September 2009	3.8920%	$0.9810	92
30 June 2009	3.8593%	$0.9622	91
31 March 2009	4.4100%	$1.0874	90
31 December 2008	6.5520%	$1.6515	92
30 September 2008	7.1201%	$1.2095	62

*Expected 02/07/2012 distribution.
^#The scheduled Distribution Payment Date is not a Business Day. In accordance with the terms, the Distribution Payment will be made on the next Business Day.

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How to treat Westpac SPS distributions in your individual tax return

Investors in Westpac SPS should consult their own professional tax advisers regarding the consequences of acquiring, holding and disposing of Westpac SPS in light of their particular circumstances, including how the distributions should be treated in their tax returns.

However, it is expected that for Australian resident investors, while the Notes remain stapled to the Preference Shares, distributions on the Westpac SPS should be treated as non-share dividends and must be included in assessable income.

For Westpac SPS investors required to prepare and lodge an individual tax return, the distributions on Westpac SPS should generally be shown as income in the section entitled “Dividends”. The amount of distributions, excluding any franking credits, should be shown as the “Franked amount”. The amount of franking credits attached to the distributions should be shown as the “Franking credit”. In this way, Westpac SPS distributions and any franking credits attached should generally be treated in the same way as dividends and franking credits received on an investment in Westpac ordinary shares.

The ATO issued a class ruling on 10 September 2008 that applies to investors who acquired Westpac SPS from the Initial Purchaser under the Prospectus dated 26 June 2008 . View a copy of the Class Ruling.

If you have any questions regarding the Westpac SPS, you can call the Westpac SPS Information Line on 1300 139 843, Monday to Friday between the hours of 8:30am and 5:30pm (AEST/AEDT).

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Further Enquiries

If you have any questions regarding the Westpac SPS, please call the Westpac SPS Information Line on 1300 139 843 Monday to Friday between 8.30am and 5.30pm (Sydney Time). 

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ASX Announcements relating to the issue of Westpac SPS

Media Release 18 June 2008 (PDF 49kb)
Media Release 26 June 2008 (PDF 40kb)
Media Release 28 July 2008 (PDF 43kb)
Media Release 31 July 2008 (PDF 34kb)

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