HSF Advises Joint Lead Managers on ANZ’s A$1.5 billion Capital Notes 6 Offer

Herbert Smith Freehills has advised the Joint Lead Managers of Australia and New Zealand Banking Group Limited’s (ANZ) offer of ANZ Capital Notes 6 (Notes). The offer also involved a reinvestment offer under which holders of ANZ Capital Notes 1 were able to apply to sell some or all of their ANZ Capital Notes 1 and reinvest the proceeds in the Notes or receive cash.

The Notes are fully paid, convertible, perpetual, unsecured, subordinated notes issued by ANZ. The Notes will constitute Additional Tier 1 Capital under APRA standards. The proceeds from the issue will be used to refinance the ANZ Capital Notes 1 and for general corporate purposes.

Herbert Smith Freehills acted for the nine Joint Lead Managers, being ANZ Securities Limited, Commonwealth Bank of Australia (Capital Markets Division), E&P Corporate Advisory Pty Limited, Morgan Stanley Australia Securities Limited, Morgans Financial Limited, Ord Minnett Limited, Shaw and Partners Limited, UBS AG, Australia Branch and Westpac Institutional Bank.

The Herbert Smith Freehills team was led by partner Philippa Stone, supported by senior associate Michael Burrell and solicitor Alex Jarmyn.

Philippa Stone said, “We are delighted to have worked with the Joint Lead Managers on another successful ANZ capital notes transaction. This transaction follows our recent role acting for the joint lead managers on the offer of CommBank PERLS XIII Capital Notes.”

ANZ was advised by King & Wood Mallesons.

This deal is another example of Herbert Smith Freehills’ market-leading work in bank hybrids. Other recent examples include advising the joint lead managers on:

  • Commonwealth Bank of Australia’s A$1.18 billion offer of CommBank PERLS XIII Capital Notes;
  • Macquarie Group Limited’s A$725 million offer of Macquarie Group Capital Notes 5, A$750 million offer of Macquarie Group Capital Notes 4 and A$641 million offer of Macquarie Bank Capital Notes 2;
  • Westpac Banking Group’s A$1.72 billion offer of Westpac Capital Notes 7 and A$1.42 billion offer of Westpac Capital Notes 6; and
  • ANZ’s A$1 billion offer of ANZ Capital Notes 5.

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