Westpac to raise $750m in notes on offer

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.