Westpac launches $750 million capital notes raising

Bank moves on debt issue, a day after rival ANZ increases raising to $1bn.

Westpac Banking Corporation Ltd has launched a $750 million debt issue, hot on the heels of rival ANZ's $1 billion capital notes raising.

Westpac has priced the tier 2 capital securities at $100 apiece.

The offer includes a buyback option for holders of Westpac stapled preferred securities, who will be given priority under the raising. 

Westpac’s acting chief financial officer Peter King said the notes issue would "further strengthen Westpac's total regulatory capital position and further diversify the Group's funding profile".

The notes will be priced at the sum of the 90 day Bank Bill Rate and a margin per annum expected to be between 2.3% and 2.45%.

The offer is open to institutional and retail investors and opens on 18 July.

On Tuesday, Australia and New Zealand Banking Group Ltd increased its capital notes raising to $1 billion, a week after launching it at $750 million.

ANZ cited 'strong investor demand' for the raise and has priced the offer at 340 basis points above the bank bill rate swap (see Philip Bayley's Measuring up the better return: ANZ notes or equity?). 

The ANZ offer opens on Wednesday. 

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