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Westpac Subordinated Notes II

Redemption of Westpac Subordinated Notes II

On 5 July 2018, Westpac Banking Corporation announced it will redeem all of its Westpac Subordinated Notes II (Notes) (representing 9,252,850 Notes at $100 each) on their first optional redemption date of 22 August 2018, in accordance with the Note Conditions1.

On 22 August 2018 each holder of Westpac Subordinated Notes II will be paid the face value of $100 and a final interest payment of $1.07002 for each Note held on 14 August 2018 (the record date for final payments). Both payments are subject to the Note Conditions.

The last day of trading in Notes on the Australian Securities Exchange (ASX) is expected to be 10 August 2018. The Notes trade under the ASX code WBCHB.

Below is a copy of the ASX announcement and redemption notice which were lodged with the ASX on 5 July 2018.

ASX announcement and redemption notice, 5 July 2018 (PDF 349KB)

For further information, call the Westpac Subordinated Notes II information line on +61 1300 551 756 (Monday to Friday, 8:30am to 5:30pm Sydney time).

About Westpac Subordinated Notes II

On 22 August 2013, Westpac issued 9,252,850 Westpac Subordinated Notes II, at an Issue Price of $100 each, raising approximately $925 million of Tier 2 Capital.

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 or Conversion 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 Note Conditions.

Key dates

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 August 2018 14 August 2018 13 August 2018

Interest payments

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 August 2018  1.9453% p.a.  4.2453% p.a.  $1.0700  92 
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

Download an electronic copy of the Prospectus (PDF 2MB)  (lodged with ASIC on 18 July 2013).

Download a copy of the Deed Poll (PDF 1MB) relating to the Notes. You may also refer to Section to the Prospectus for information regarding the 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

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

Free copies of the ASIC guidance can be obtained from ASIC's website at 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 

Terms and conditions (PDF 213KB)

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.