The information on this website is for Australian residents only.
On 8 September 2015, Westpac Banking Corporation through its London branch (ABN 33 007 457 141) ("Westpac") issued 13,244,280 Westpac Capital Notes 3 ("Notes" or "WCN 3") at an Issue Price of A$100 each, raising approximately $1.32 billion of Additional Tier 1 Capital.
Westpac Capital Notes 3 traded on ASX under the ASX code "WBCPF".
Redemption of Westpac Capital Notes 3 completed Notice for Westpac Capital Notes 3
All WCN 3 were redeemed in accordance with the Redemption Notice issued by Westpac to WCN 3 holders on 15 February 2021. The Redemption Notice and letter to holders of WCN 3 were released on ASX and copies can be found here:
Holders have been paid $100 for each WCN 3 held on 22 March 2021. They have also been paid the final WCN 3 distribution (Distribution) of $0.6921, fully franked, for each WCN 3 held on the record date of 12 March 2021. The Distribution covers the period from 23 December 2020 to 22 March 2021 (inclusive).
Westpac Capital Notes 7 Reinvestment Offer and Amendments to WCN 3 Terms
On 4 November 2020, Westpac announced the offer of a new hybrid security known as Westpac Capital Notes 7 (WCN7) (Offer), WCN 7 are quoted on ASX under ASX code WBCPJ. WCN7 were issued on 4 December 2020.
The Offer included a Reinvestment Offer to Eligible Westpac Capital Notes 3 Holders1 to apply to reinvest all or some of their Westpac Capital Notes 3 in WCN7 (and apply for additional WCN7).
Further details can be found in the WCN7 prospectus available via the WCN7 webpage.
Westpac released the following documents on ASX:
- Amendments to the Westpac Capital Notes 3 Terms, primarily to facilitate the Reinvestment Offer;
- A letter to Eligible Westpac Capital Notes 3 Holders including a description of the Reinvestment Offer;
- A Transfer Notice regarding any Westpac Capital Notes 3 reinvested under the Reinvestment Offer;. and
- Nominated Party Deed Poll, containing the undertaking by the Nominated Party to acquire each Participating Westpac Capital Note 3 for $100.
These announcements are available below:
1 Eligible Westpac Capital Notes 3 Holders were registered holders of Westpac Capital Notes 3 shown on the Register at 7.00pm (Sydney time) on 28 October 2020 to have an address in Australia.
Distributions on Westpac Capital Notes 3
The Notes paid fully franked floating rate Distributions quarterly in arrear (subject to the Distribution Payment Conditions) and were paid on 22 March, 22 June, 22 September and 22 December of each year1, until the Notes were Redeemed on 22 March 2021. If any of these scheduled dates were not a Business Day, then the Distribution was paid on the next Business Day without any interest in respect of the delay.
The Distribution Rate was calculated each quarter as the sum of the 90 day Bank Bill Rate plus the Margin, together multiplied by (1 – Tax Rate). The formula can be summarised as: (90 day Bank Bill Rate + Margin) x (1 - Tax Rate).
The Distribution Rate varied each quarter based on changes in the 90 day Bank Bill Rate. The Margin was 4.00% per annum did not change.
The Bank Bill Rate was set on the first Business Day of each Distribution Period (which for the first Distribution Period was the Issue Date).
The first Distribution Period was from (but excluding) the Issue Date to (and including) 22 December 2015. Thereafter, each Distribution Period was from (but excluding) the previous Distribution Payment Date to (and including) the next Distribution Payment Date.
Holders received cash Distributions and franking credits. Your ability to use franking credits will depend on your individual tax position. The potential value of the franking credits does not accrue to you at the same time as you receive the cash Distribution.
1. A first pro-rata distribution was paid on 4 December 2020 and a second pro-rata distribution was paid on 22 December 2020. Refer to the WCN 7 prospectus for further information
Distribution payment history
|Distribution payment date||Distribution rate per annum||Cash amount of Distribution per Westpac Capital Note 3||Number of days in the Distribution Period|
|22 March 2021||2.8070%||$0.6921||90|
|22 December 20203||2.8630%||$0.1412||18|
|4 December 20202||2.8630%||$0.5726||73|
|22 September 2020||2.8735%||$0.7243||92|
|22 June 2020||3.1240%||$0.7874||92|
|23 March 2020||3.4455%||$0.8590||91|
|23 December 2019||3.4405%||$0.8578||91|
|23 September 2019||3.6295%||$0.9148||92|
|24 June 2019||4.0670%||$1.0251||92|
|22 March 2019||4.2560%||$1.0494||90|
|24 December 2018||4.1545%||$1.0358||91|
|24 September 2018||4.2770%||$1.0780||92|
|22 June 2018||4.1965%||$1.0577||92|
|22 March 2018||4.0565%||$1.0002||90|
|22 December 2017||3.9970%||$0.9965||91|
|22 September 2017||4.0005%||$1.0083||92|
|22 June 2017||4.0565%||$1.0225||92|
|22 March 2017||4.0530%||$0.9994||90|
|22 December 2016||4.0145%||$1.0009||91|
|22 September 2016||4.2000%||$1.0586||92|
|22 June 2016||4.4123%||$1.1121||92|
|22 March 2016||4.4567%||$1.1111||91|
|22 December 2015||4.3155%||$1.2414||105|
1. Expected rate/amount per note
2. First Pro-Rata Westpac Capital Notes 3 Distribution for the period from 23 September 2020 to 4 December 2020, inclusive.
3. Second Pro-Rata Westpac Capital Notes 3 Distribution for the period from 5 December 2020 to 22 December 2020, inclusive.
Prospectus and Notes Deed Poll
ATO Class Ruling
2015 Westpac Capital Notes 3 Announcements
Westpac's Guide to Bank Hybrids
A web-based guide to help investors understand some of the typical features and risks associated with an investment in bank hybrid securities is available at Westpac’s Guide to Bank Hybrids. The Guide to Bank Hybrids provides a brief overview of hybrid investments, including how to invest in an Australian bank and the typical features and risks of different types of bank hybrids. The Guide to Bank Hybrids may be helpful when you are considering an investment in the Notes.
Things you should know
If you have any questions regarding the Westpac Capital Notes 3 Offer, please call the Westpac Capital Notes 3 Information Line on 1300 206 701 (Monday to Friday, 8.30am to 5.30pm, Sydney time).
Terms and conditions of website
Unless otherwise defined, capitalised terms used on this website have the same meaning as those in the Prospectus.