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Hybrid margins bottom

ANZ has launched an issue of capital notes, looking to raise A$1 billion or more with an offer that includes a margin between 300 and 320 basis points. The first call date is 20 March 2028.

Indicative pricing of the issue, ANZ Capital Notes 6, is wider than the margin on Commonwealth Bank’s $1 billion hybrid issue in February.

CBA is paying a margin of 275 bps in the issue, PERLS XIII Capital Notes. While the margin on the CBA issue was tighter, the call date is shorter – 20 October 2026.

The only other hybrid issue this year, also in February, was Macquarie Group’s $500 million issue, Macquarie Capital Notes 5, which was priced at a margin of 300 bps with a call date of September 2027.

Before the ANZ issue, margins had been steadily tightening. In November, Westpac paid a margin of 340 bps on a $1.4 billion issue, Capital Notes 7.

Bank of Queensland and Bendigo and Adelaide Bank launched hybrid issues in October and both paid a margin of 380 bps.

 

 

 

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