Westpac Banking Corporation (WBC) is aiming to raise approximately $750 million in a capital notes offer, saying the notes will qualify as additional Tier 1 capital under the Australian Prudential Regulation Authority's Basel III capital adequacy framework.
The lender expects the margin to be in the range of 3.05% to 3.2% per annum, determined under the bookbuild.
The notes will have an issue price of $100 each, with distributions paid quarterly in arrear.
The notes are scheduled to convert into ordinary shares in 2024.
Westpac chief financial officer Peter King said the bank had a strong capital position, which the notes issue would further strengthen.