Capabilities

• Transactional Banking
• Loan Markets
• Securitisation
• Structured and Portfolio Asset Finance

Transactional Banking

NSW Government
Westpac provides transactional banking services to all NSW Government Agencies (excluding state-owned corporations) for a five-year term that has been in effect since 1 April 2008.

The services provided include transactional banking, purchasing card facilities and customer payment and collection. While Westpac is the incumbent service provider to a large number of government agencies, the additional bodies include eight area health services and 2,300 schools.

This deal consolidates Westpac's position as the pre-eminent provider of transactional banking in Australia, including the governments of New South Wales, Tasmania, Victoria, South Australia and the Northern Territory.

Federal Government
Westpac also provides extensive transactional banking services to the Commonwealth, with over 90 Federal Government names clustered in various Departments and Agencies in the portfolio. Westpac is focussed on meeting the unique compliance obligations (Core Protocols) and service requirements of the Commonwealth and has contributed to various Government thought leadership and innovation initiatives.

Recent efforts have resulted in strong growth in this sector in 2009, including growth in both transactional revenues and term deposits. Furthermore, a large number of Federal Government agencies have awarded Westpac their transactional banking business during this period which can be expected to continue to drive this growth in coming years.

Loan Markets

Loan Markets
Westpac has been a leader in Australian loan markets, a position illustrated by the volume and value of transactions we have executed over the course of 2008 and 2009. Westpac has been a consistent leader in the loan markets in Australia and New Zealand over recent years through strong client focus, innovative solutions and superior execution capabilities. In 2009, Westpac was the Arranger on client transactions with a value in excess of US$25.6 billion against total market volumes of approximately US$40 billion (US$24.6 billion in Australia and approximately US$1.0 billion in New Zealand).

Westpac's leadership position is illustrated both by the mandates and the recognition it has received in prominent and unique leverage, project and infrastructure transactions, and across the broader Australian and New Zealand syndicated and bilateral loan markets.

Leverage Finance
Westpac Leverage and Acquisition Finance has completed over 25 transactions during the last three years and continues to be one of the leading players in the market. Westpac has strong capability to cover from small and mid to larger sized transactions and has been a Lead Arranger on all Syndicated Leveraged transactions over the course of the year, including being a Mandated Lead Arranger of Archer Capital's purchase of MYOB and Advent Private Capital's investment in GenesisCare.

Project and Infrastructure Finance
Westpac has broad experience in Australasian project finance, and strong capabilities to lead large and ground-breaking transactions. Recently Westpac successfully closed and syndicated a seven-year syndicated debt facility for the Victorian Desalination Plant, a Public-Private Partnership (PPP) transaction for the state of Victoria. The Victorian Desalination Plant is a $3.5 billion plant which will supply up to 150 billion litres of water a year to Melbourne, South Gippsland and Western Port towns. The PPP was the largest undertaken in Australia for the year and has been funded during a time of significant scarcity of capital. Westpac is consistently ranked in the top few Lead Arrangers in Australasian project finance and is currently number one based on the Dealogic Project Finance Review for the nine-months to 30 September 2009.

Syndicated Loan Markets
The syndicated loan markets in 2009 have been dominated by refinancing and Westpac has been at the forefront of ensuring that clients' refinancing needs have been met in an environment of restricted loan capital. Westpac's distribution capability has been highlighted through our role as Arranger on recent large transactions for major corporate clients such as Aquasure, Envestra, Telstra, Mirvac, Bluescope Steel and AGL Energy.

Securitisation

The Westpac Securitisation team is a clear leader in the Australian ABS market, and was ranked number 1 in ABS league tables at the end of 2008 and in 2009*. Over the past 12 months, Westpac has been active in the public ABS market, and has lead arranged and lead managed several transactions including:

• $482 million Series 2009-1 Harvey Trust (Credit Union Australia);
• $535 million Progress 2009-1 Trust (AMP Bank Limited);
• $712 million Series 2009-1 REDS Trust (Bank of Queensland);
• $263 million Light Trust No. 2 (Australian Central Credit Union);
• $262 million GBS Receivables Trust No.4 (Greater Building Society);
• $276 million Maxis Loans Securitisation Fund 2009-1 (Member's Equity Bank);
• $470 million FirstMac Mortgage Funding Trust Series 2-2009 (FirstMac Limited).

Westpac's Securitisation team finances in excess of $15 billion of assets in Australia and New Zealand through its balance sheet and Waratah Receivables Corporation, which is also one of the largest Asset-Backed Commercial Paper (ABCP) securitisation conduits in the Australian market.

We finance on behalf of our customers over 15 different asset classes including Margin loan portfolios, Prime Residential Mortgages, Trade receivables, Lease portfolios and Auto finance portfolios. Westpac's success in the Australian Asset-Backed Securities (ABS) market is also attributable to our dedication in delivering innovative securitisation and structured finance solutions to our clients. Westpac's innovation and commitment to the ABS market will continue to sustain our position as a leading securitisation house in Australia.

Structured and Portfolio Asset Finance

Westpac is a leading equipment financier in Australia & New Zealand with a portfolio of assets in excess of A$10 billion. Our team of Asset Finance specialists has extensive experience in arranging and structuring innovative financing solutions across a full range of products across both Structured and Portfolio Asset Finance. In addition to the breadth of our transaction experience, we pride ourselves on our execution excellence. Our team has direct relationships with major equipment manufacturers in Australia and supports these clients via our delivery of tripartite financing arrangements to facilitate capital efficient balance sheet funding to augment sales endeavours through the provision of a fully bundled "all of life" asset financing.

Recent notable transactions include: financing over $100 million structured asset finance across three flagship aircraft operators in Australia and Singapore; motor vehicle fleet for Australian State and Federal Government in excess of $100 million; execution of various Master Lease facilities of approximately $450 million in Australia and New Zealand across the spectrum of corporate industry specialisation; and port, infrastructure and IT assets for New Zealand Government and District Health Boards.

Westpac is a leader among wholesale banks in Australia and New Zealand. Through Westpac's expertise and dedicated relationship management, our valued clients benefit from a diverse range of options to meet their particular capital requirements. With one of the largest distribution networks in the region and strong international coverage, clients are assured of extensive access to investors both on and offshore.