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Westpac Subordinated Notes

Westpac Subordinated Notes redemption

On 21 June 2017, Westpac Banking Corporation announced it will redeem all of its Westpac Subordinated Notes (representing 16,762,190 Westpac Subordinated Notes at $100 each) on their first optional Redemption Date of 23 August 2017, in accordance with their conditions (WSN Conditions).

Each holder of Westpac Subordinated Notes will be paid the face value of $100 and a final interest payment of $1.1305 (for the interest period from, and including, 23 May 2017 to, but excluding, 23 August 2017) for each Westpac Subordinated Note held on the register on 15 August 2017 (the record date for the final payments).

All payments will be made in accordance with the WSN Conditions.


The last trading day of Westpac Subordinated Notes on the Australian Securities Exchange (ASX) was 11 August 2017.

Below is a copy of the ASX announcement and redemption notice which were lodged with the ASX on 21 June 2017. The ASX announcement (including the redemption notice) provides formal notice of the early redemption of Westpac Subordinated Notes to all Westpac Subordinated Note holders, the Registrar and ASX in accordance with the WSN Conditions.

ASX announcement and redemption notice, 21 June 2017 (PDF 313KB)

For further information, call the Westpac Subordinated Notes information line (Monday to Friday, 8.30am to 5.30pm Sydney time), on +61 1300 551 472. 

About Westpac Subordinated Notes

The information on this website is only available to persons who are not US Persons (as defined in Regulation S under the United States Securities Act of 1933, as amended (US Securities Act), who are not acting for the account or benefit of a US Person and who are not prohibited by the laws of any place outside Australia from accessing the Information Memorandum or dealing in Westpac Subordinated Notes.

Unless otherwise defined, capitalised terms used on this website have the meanings given in the (Information Memorandum) dated 23 July 2012.


Download an electronic copy of the Information Memorandum dated 23 July 2012 (PDF 884KB)

The Westpac Subordinated Notes Offer is closed.

On 23 August 2012, Westpac Banking Corporation (ABN 33 007 457 141, AFSL 233714) (Westpac) issued 16,762,190 Westpac Subordinated Notes, at an Issue Price of $100 each, raising approximately A$1.68 billion of Tier 2 capital. Westpac Subordinated Notes commenced trading on ASX on a deferred settlement basis on 24 August 2012 and on a normal settlement basis on 31 August 2012, under the ASX code WBCHA.

What are Westpac Subordinated Notes?

Westpac Subordinated Notes:

  • are fully paid, registered, unsecured, subordinated debt obligations of Westpac, with a Face Value of A$100 per Westpac Subordinated Note;
  • pay interest quarterly in arrear, at a fixed Margin of 2.75% per annum plus the 90 day Bank Bill Rate. The 90 day Bank Bill Rate is set on the first Business Day of each Interest Period. The Interest Rate will vary each quarter based on changes in the 90 day Bank Bill Rate; 
  • must be redeemed by Westpac on the Maturity Date, 23 August 2022, unless Westpac is not Solvent at the time the payment is due, or will not be Solvent after making the payment (unless redeemed earlier by Westpac); and
  • are subordinated to claims of Senior Creditors of Westpac.

Interest is not deferrable or subject to Westpac’s discretion (unless Westpac is not Solvent at the time payment is due or would not be Solvent immediately after making the payment).

Further details on Westpac Subordinated Notes are included in the Westpac Subordinated Notes Information Memorandum.

Key dates for Westpac Subordinated Notes

Issue Date 23 August 2012
Final trading day on ASX 11 August 2017
Record Date for final interest payment 15 August 2017
Redemption Date 23 August 2017
Maturity Date 23 August 2022

Interest payments on Westpac Subordinated Notes

Westpac Subordinated Notes pay a floating rate of interest equal to the sum of the Margin and the 90 day Bank Bill Rate, paid in cash, quarterly in arrear.

The Margin is 2.75% per annum. It was determined following the Bookbuild and will not change.

The 90 day Bank Bill Rate is set on the first Business Day of each Interest Period. The Interest Rate will vary each quarter based upon changes in the 90 day Bank Bill Rate.

The Interest Rate and the 90 day Bank Bill Rate for each Interest Period will be announced to ASX and can be obtained from this website.

Interest payable on each Westpac Subordinated Note is calculated as follows:

Interest = (Face Value x Interest Rate x N) divided by 365

Face Value is A$100;
Interest Rate is the 90 day Bank Bill Rate + Margin, which is 2.75%; and
N is the number of days in the Interest Period.

Interest in respect of a Westpac Subordinated Note is payable quarterly in arrear on 23 February, 23 May, 23 August and 23 November of each year, commencing on 23 November 2012, to and including the Maturity Date or any earlier Redemption Date. If any of these scheduled dates are not Business Days, then the payment will occur on the following Business Day. 


See Section 1.2 of the Information Memorandum (PDF 884KB) for more detail on interest payments.

Payment and record dates

Interest Payment Date Relevant Record Date Ex-interest payment date
23 August 2017 15 August 2017 14 August 2017

Interest payments

Interest payment date 90 day bank bill rate Interest rate Interest amount per Westpac Subordinated Note Number of days in the interest period
23 August 2017  1.7350% p.a.  4.4850% p.a.  $1.1305  92 
23 May 2017 1.7800% p.a. 4.5300% p.a. $1.1046 89
23 February 2017 1.7550% p.a. 4.5050% p.a. $1.1355 92
23 November 2016 1.7250% p.a. 4.4750% p.a. $1.1279 92
23 August 2016 1.9950% p.a. 4.7450% p.a. $1.1960 92
23 May 2016 2.2800% p.a 5.0300% p.a $1.2403 90
23 February 2016 2.2500% p.a. 5.0000% p.a. $1.2603 92
23 November 2015 2.1150% p.a. 4.8650% p.a. $1.2262 92
25 August 2015 2.1250% p.a. 4.8750% p.a. $1.2288 92
25 May 2015 2.3167% p.a. 5.0667% p.a. $1.2354 89
23 February 2015 2.7250% p.a. 5.4750% p.a. $1.3800 92
24 November 2014 2.6350% p.a. 5.3850% p.a. $1.3573 92
25 August 2014 2.6900% p.a. 5.4400% p.a. $1.3712 92
23 May 2014 2.6267% p.a. 5.3767% p.a. $1.3110 89
24 February 2014 2.5850% p.a. 5.3350% p.a. $1.3447 92
25 November 2013 2.5892% p.a. 5.3392% p.a. $1.3458 92
23 August 2013 2.8100% p.a. 5.5600% p.a. $1.4014 92
23 May 2013 2.9783% p.a. 5.7283% p.a. $1.3968 89
25 February 2013 3.27% p.a. 6.02% p.a. $1.5174 92
23 November 2012 3.62% p.a. 6.37% p.a. $1.6056 92

Maturity date and early redemption by Westpac

The Maturity Date is the 10th anniversary of the Issue Date (23 August 2022). Westpac Subordinated Notes must be redeemed by Westpac on the Maturity Date unless Westpac is not Solvent at the time the payment is due, or will not be Solvent after making the payment (unless redeemed earlier by Westpac).

Westpac has announced it will redeem all of its Westpac Subordinated Notes on their first optional Redemption Date of 23 August 2017.

Westpac Subordinated Notes may be redeemed earlier at Westpac’s option for certain taxation or regulatory reasons, in each case subject to APRA’s prior written consent. There can be no certainty that Westpac will choose to redeem the Westpac Subordinated Notes early, nor that APRA would provide its consent in respect of any early redemption.

Holders cannot request redemption of their Westpac Subordinated Notes prior to the Maturity Date.

Information memorandum and deed poll

Download an electronic copy of the Information Memorandum dated 23 July 2012 (PDF 884KB)

Download an electronic copy the Deed Poll relating to the Westpac Subordinated Notes (PDF 2MB). Refer to the Information Memorandum for information regarding the Deed Poll.

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.

Further enquiries

If you have any questions regarding the Westpac Subordinated Notes, please call the Westpac Subordinated Notes  Information Line on +61 1300 551 472 (local call cost within Australia), Monday to Friday, 8.30am to 5.30pm, Sydney time.

ASX announcements and investor presentation

ASX announcement related to the redemption of Westpac Subordinated Notes (PDF 313KB) - 21 June 2017 

Media release related tp Westpac Subordinated Notes Offer Closes dated (PDF 240KB) - 23 August 2012

Media release related to Westpac sets the Margin and increases the Offer size (PDF 108KB) -  20 July 2012

Media release Westpac announces Westpac Subordinated Notes Offer dated (PDF 157KB) - 16 July 2012 

View the Investor Presentation - Westpac Subordinated Notes (PDF 785KB)

Terms and Conditions of website

Nothing contained on this website or in the Information Memorandum constitutes an offer, invitation or recommendation by Westpac to acquire Westpac Subordinated Notes, or financial product advice. This website and the Information Memorandum have been prepared without taking into account your investment objectives, financial situation or particular needs. If, after reading this website and the Information Memorandum, you are unclear or have any questions, then you should consult your financial adviser or other professional adviser.

Westpac Subordinated Notes have not been, and will not be, registered under the US Securities Act and may not be offered, sold, delivered or transferred within the United States or to, or for the account or benefit of, a US Persons. Neither the Information Memorandum nor other materials relating to the Offer may be distributed in the United States.

The distribution of the Information Memorandum (including an electronic copy) in jurisdictions outside Australia may be restricted by law. If you are outside Australia and come into possession of a copy of the Information Memorandum, you should seek advice on and observe those restrictions. Failure to comply with these restrictions may violate securities laws.

Westpac Subordinated Notes are not:

  • deposits with, or deposit liabilities of, Westpac; 

  • protected accounts for the purposes of the depositor protection provisions of the Banking Act 1959 (Cth) or of the Financial Claims Scheme established under the Banking Act 1959 (Cth); nor 

  • guaranteed or insured by the Australian Government or under any compensation scheme of the Australian Government, or by any other government, under any other compensation scheme or by any government agency or any other party.

By accessing and viewing this website you agree to be bound by the Terms and Conditions of this website.