The Westpac Subordinated Notes II Offer is now closed.
On 22 August 2013, Westpac issued 9,252,850 Westpac Subordinated Notes II (Notes), at an Issue Price of $100 each, raising approximately $925 million of Tier 2 Capital.
Westpac Subordinated Notes II trade on the ASX under the code WBCHB.
About Westpac Subordinated Notes II
Westpac Subordinated Notes II:
- are fully paid, redeemable, subordinated and unsecured debt obligations of Westpac, which, if they are on issue at the time, rank for payment in priority to Ordinary Shares and other Junior Ranking Capital Instruments in a Winding-Up;
- offer Holders cumulative, floating rate Interest paid quarterly in arrear (subject to the Solvency Condition). The Interest Rate is determined quarterly as the sum of the 90 day Bank Bill Rate plus a Margin per annum. The Margin is 2.30% per annum. Interest payments do not have franking credits attached;
- must be redeemed by Westpac on the Maturity Date (22 August 2023) unless Westpac is not, or will not be, Solvent;
- may be Redeemed prior to the Maturity Date at Westpac’s option on 22 August 2018 and any Interest Payment Date thereafter or on any Interest Payment Date if a Tax Event or Regulatory Event occurs. Redemption is subject to APRA’s prior written approval1;
- may Convert into Ordinary Shares if a Non-Viability Trigger Event occurs or, if Westpac is unable to Convert the Notes, be Written-off;
- do not give Holders a right to request Redemption, Conversion or Write-off of their Notes. To realise their investment, Holders must sell their Notes on ASX at the prevailing market price; and
- qualify as Tier 2 Capital to help satisfy Westpac’s regulatory capital requirements.
The Notes are not deposit liabilities or protected accounts of Westpac for the purposes of the Banking Act or Financial Claims Scheme and are not subject to the depositor protection provisions of Australian banking legislation (including the Australian Government guarantee of certain bank deposits).
Further details on the Notes can be found in the Prospectus and the Conditions.
|Issue Date of Notes||22 August 2013|
|Commencement of normal settlement trading||29 August 2013|
|First Optional Redemption Date (at Westpac’s discretion)3||22 August 2018|
|Maturity Date||22 August 2023|
Interest payments on Westpac Subordinated Notes II
The Notes pay Interest quarterly in arrear at the 90 day Bank Bill Rate plus the Margin. Subject to the Solvency Condition, Interest will be payable on 22 February, 22 May, 22 August and 22 November, commencing on 22 November 2013 to and including the Maturity Date or any earlier date on which the Notes are Redeemed, Converted or Written-off.
The Interest Rate will vary each quarter based on changes in the 90 day Bank Bill Rate. The Margin is fixed for the term of the Notes and will not change. The Interest Rate is calculated using the following formula:
Interest Rate = Bank Bill Rate + Margin
Bank Bill Rate:
The Bank Bill Rate is set on the first Business Day of each Interest Period (which for the first Interest Period was the Issue Date).
The Margin is 2.30% per annum.
While the Notes are quoted, Westpac will announce to ASX the Interest Rate for each Interest Period. Information about the Interest Rate will also be available on this website.
Interest payments and record dates
|Interest Payment Date||Relevant Record Date||Ex-interest Date|
|22 May 2018||14 May 2018||11 May 2018|
|Interest payment date||90 day bank bill rate||Interest rate||Interest amount per Westpac Subordinated Note II||Number of days in the interest period|
|22 May 2018||1.7650% p.a.||4.0650% p.a.||$0.9912||89|
|22 February 2018||1.7250% p.a.||4.0250% p.a.||$1.0145||92|
|22 November 2017||1.7050% p.a.||4.0050% p.a.||$1.0095||92|
|22 August 2017||1.7350% p.a.||4.0350% p.a.||$1.0170||92|
|22 May 2017||1.7800% p.a.||4.0800% p.a.||$0.9948||89|
|22 February 2017||1.7550% p.a.||4.0550% p.a.||$1.0221||92|
|22 November 2016||1.7250% p.a.||4.0250% p.a.||$1.0145||92|
|22 August 2016||1.9950% p.a.||4.2950% p.a.||$1.0826||92|
|23 May 2016||2.2767% p.a.||4.5767% p.a.||$1.1285||90|
|22 February 2016||2.2500% p.a.||4.5500% p.a.||$1.1468||92|
|23 November 2015||2.1150% p.a.||4.4150% p.a.||$1.1128||92|
|25 August 2015||2.1300% p.a.||4.4300% p.a.||$1.1166||92|
|22 May 2015||2.3167% p.a.||4.6167% p.a.||$1.1257||89|
|23 February 2015||2.7250% p.a.||5.0250% p.a.||$1.2666||92|
|24 November 2014||2.6350% p.a.||4.9350% p.a.||$1.2439||92|
|22 August 2014||2.7050% p.a.||5.0050% p.a.||$1.2615||92|
|22 May 2014||2.6267% p.a.||4.9267% p.a.||$1.2013||89|
|24 February 2014||2.5850% p.a.||4.8850% p.a.||$1.2313||92|
|22 November 2013||2.6000% p.a.||4.9000% p.a.||$1.2351||9|
Prospectus and Deed Poll
Nothing contained on this website or in the Prospectus constitutes financial product advice, investment advice or a recommendation to invest in the Notes. This website and the Prospectus have been prepared without taking into account your investment objectives, financial situation or particular needs. You should read the entire Prospectus carefully before deciding whether to invest in Notes. If you have any questions about the Notes, you should consult your professional adviser.
Announcements and investor presentation
- Media release 22 August 2013:
- Media release 17 July 2013:
- Media release 10 July 2013:
- Media release 10 July 2013:
- 10 July 2013:
ASIC guidance for retail investors
ASIC has published guidance which may be relevant to your consideration of the Westpac Subordinated Notes II, namely, information for retail investors who are considering investing in hybrid securities called "Hybrid securities and notes" (under the heading "Complex investments" at www.moneysmart.gov.au/investing).
Free copies of the ASIC guidance can be obtained from ASIC's website at www.moneysmart.gov.au/investing or by calling ASIC on 1300 300 630 from Australia or +61 3 5177 3988 (from outside Australia).
Westpac's Guide to Bank Hybrids
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 hybrid capital securities. 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 a bank hybrid.
Terms and Conditions of website
Unless otherwise defined, capitalised terms used on this website have the same meaning as those in the Prospectus.
1. There can be no certainty APRA will provide its prior written approval for any redemption prior to the Maturity Date.
2. Interest is payable quarterly in arrear, subject to the satisfaction of the Solvency Condition – see Sections 2.1.1 and 2.2.8.
3. APRA must provide its prior written approval for any such Redemption. There can be no certainty that APRA will provide its approval.