Bendigo and Adelaide prices CPS3

Bendigo and Adelaide Bank completed the bookbuild for its CPS 3 note issue on Thursday. The bookbuild resulted in the issue size being increased slightly to A$225 million (from $200 million) and the credit margin was set at 400 basis points.

The securities have a six-year non-call period. Of the $25 million increase in the issue size, $22 million was allocated to preference share holders who chose to roll over through the broker firm offer.


The CPS 3 securities are additional tier one capital notes and will, in part, replace $90 million preference shares due to be called in June. The preference shares were issued ten years earlier, do not have common equity and non-viability triggers but are perpetual and have deferrable, non-cumulative dividends.



The preference shares only pay a credit margin of 150 bps. Other preference share holders will have the opportunity to roll over through the general offer, if they wish to do so. As a result, the final issue size is likely to be somewhat larger.