ANZ announced yesterday that it is considering an on-market buy-back offer for its convertible preference shares (CPS3), issued in September 2011. The bank noted that any buy-back is expected to be made in conjunction with the offer of a new hybrid capital instrument. This would provide CPS3 holders with the ability to elect following options:  to reinvest CPS3 into the new hybrid capital instrument; for CPS3 to be bought back at their face value for cash; or to do nothing, in which case the relevant CPS3 will remain listed on the ASX (until redeemed or converted at a future date in accordance with the CPS3 terms).  The timing of any buy-back announcement is likely to be delayed until after 15 August 2017, when ANZ releases its third quarter trading update for the 2016/17 financial year on.  In view of the proposed on-market buy-back, ANZ said it would not formally exercise its right to redeem the CPS3 on 1 September 2017.  Should the offer proceed, ANZ will lodge a prospectus with ASIC and will provide further details of the offer.