Australia and New Zealand Banking Group announced last night it had "completed and upsized" its Additional Tier 1 Capital offer, known as ANZ Capital Notes 4, or CN4. The bank said it had accepted subscriptions for notes totalling A$1.622 billion, well in excess of the $1 billion it was targeting at launch in August. When it launched the CN4 offer in August, ANZ said one of its main aims was to raise at last $1 billion to refinance convertible preference shares issued in December 2009, known as CPS2.The news release disclosed that, included in the $1.6 billion issued, was an amount of just over $900 million from its CPS2 buyback, which security holders had reinvested in the CN4 issue. ANZ's CPS2 security holders were encouraged - but not forced - to reinvest in CN4. In relation to all other applicants, confirmation of the number of notes issued, and refund cheques for payments from unsuccessful applicants, are expected to be despatched by 4 October 2016, ANZ advised.  Trading of the notes "on a normal settlement basis" via the ASX is expected to start from 5 October 2016, by which date the Australian Taxation Office is likely to be ready to release a Class Ruling outlining its proposed tax treatment of the notes.The first distribution payment date is expected to be 20 December 2016. The distribution rate, calculated by adding a margin of 4.700 per cent to the 3-month bank bill swap rate as at 27 September. This equates to a fully franked distribution amount of $1.0383 in respect of each note, ANZ said. This was at the lowest point of the expected range, as outlined ahead of the CN4 bookbuild in August.In newspaper advertisements today, ANZ has explained the basis of allocation for its CN4 securities. Among the points made are that a scale back was applied to clients of broker firms and institutional investors (except for CPS2 holders, who were fully entitled). In addition, any applications received after the closing date, had cheques that were subsequently dishonoured, or BPAY payments that were not received, have not received any allocation.The adverts also advise that the notes are expected to start trading on the ASX on a deferred settlement basis today (28 September) at approximately 12 noon. The ASX code is 'ANZPG'. Not all CPS2 noteholders chose to accept ANZ's buyback offer and to re-invest in the Capital Note 4 issue, however. Their treatment is one detail that is yet to be fully settled."In due course and following receipt of various approvals, ANZ will announce on the ASX how those CPS2 not reinvested in CN4 will be treated on the mandatory conversion date, being 15 December 2016," ANZ has advised.