ANZ, BOQ issue subordinated debt

ANZ and Bank of Queensland hit the debt capital markets yesterday, seeking a total of A$350 million in subordinated debt.

ANZ announced that it would issue $200 million of subordinated notes with a fixed rate of 4.75 per cent, due in May 2027.

The notes will covert to ordinary shares if a non-viability trigger event occurs.

BOQ launched an issue of additional tier one notes, seeking to raise $150 million. The notes will be perpetual, unsecured and subordinated and will pay a floating rate distribution, with the margin to be determined by a bookbuild.

Distributions are discretionary and there is a mandatory conversion after seven years. BOQ may elect to covert, redeem or resell in five years, subject to certain conditions and APRA approval.

The issue is for wholesale investors.