Westpac Capital Notes 3

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

On 22 March 2021, Westpac completed the redemption of 4,584,547 WCN 3 that remained on issue (ASX code: WBCPF). The related ASX announcement can be found here: Redemption of Outstanding Westpac Capital Notes 3 (PDF 42KB)

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:
Letter and Redemption Notice for Westpac Capital Notes 3  (PDF 124KB)

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:

1. Amendments to the Westpac Capital Notes 3 Terms, primarily to facilitate the Reinvestment Offer;
2. A letter to Eligible Westpac Capital Notes 3 Holders including a description of the Reinvestment Offer; 
3. A Transfer Notice regarding any Westpac Capital Notes 3 reinvested under the Reinvestment Offer;. and
4. 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:

• Amended Westpac Capital Notes 3 Terms (PDF 318KB) - 4 November 2020
• Letter to Eligible Westpac Capital Notes 3 Holders and Transfer Notice (PDF 219KB) - 4 November 2020 
• Nominated Party Deed Poll  (PDF 519KB) - 4 November 2020
  
  

Footnotes:
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.

 

<sup>Footnote
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</sup>

Distribution payment history

^Footnotes

^{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

Westpac Capital Notes 3 Prospectus (PDF 2MB) (lodged with ASIC on 6 August 2015).
Westpac Capital Notes 3 Deed Poll (PDF 469KB) relating to Westpac Capital Notes 3. You may also refer to the Prospectus for information regarding the Notes Deed Poll.

 

ATO Class Ruling

On 19 August 2015, the Australian Taxation Office issued a Class Ruling, which confirms the Australian tax consequences for certain holders of Westpac Capital Notes 3. You can view a copy of the Class Ruling here (PDF 218KB).

2015 Westpac Capital Notes 3 Announcements

1. ASX Announcement dated 8 September 2015: Westpac raises $1.32billion from Westpac Capital Notes 3 (PDF 435KB)
2. Replacement Prospectus dated 6 August 2015 (PDF 2MB)
3. ASX Announcement of Bookbuild and Margin dated 5 August 2015 (PDF 310KB)
4. ASX announcement of Offer dated 27 July 2015 (PDF 146KB)
5. Investor Presentation dated 27 July 2015 (PDF 2MB)
6. Postcard sent to Eligible Securityholders dated 27 July 2015 (PDF 33KB)

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.