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Australia and New Zealand Banking Group Ltd. Capital/Financing Update 2014

Mar 30, 2014

10425_rns_2014-03-30_13e534b1-6385-45b4-b7b1-bf9d85c57c70.pdf

Capital/Financing Update

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Media Release

For Release: 31 March 2014

ANZ closes ANZ Capital Notes 2 Offer, upsized to raise $1.61 billion

ANZ has successfully completed, and upsized, its offer of ANZ Capital Notes 2 (ANZPE) ( Offer ), raising $1.61 billion of Additional Tier 1 Capital (prior to Offer expenses).

16.1 million ANZ Capital Notes 2 ( Notes ) have been issued at $100 each. This includes approximately $627 million of CPS1 which have been reinvested in the Notes.

Allocation Policy

  • All valid applications under the Reinvestment Offer, ANZ Securityholder Offer and General Offer have been accepted in full.

  • A scale back was applied to Applicants under the Broker Firm Offer (other than for Broker Firm Applicants under the Reinvestment Offer, who were accepted in full) and the Institutional Offer.

Applications accompanied by cheques that were subsequently dishonoured and online Applications for which BPAY® payments were not received, have not received an allocation of Notes.

CPS1 Reinvestment Applicants, ANZ Securityholder Applicants and General Applicants can obtain information about their allocation of Notes by calling the ANZ Information Line on the numbers provided at the end of this announcement.

Broker Firm Applicants should confirm their allocation with their Syndicate Broker.

Deferred Settlement Trading

The Notes are expected to commence trading on ASX on a deferred settlement basis tomorrow at approximately 12.00pm ( AEDT ) under the ASX code of “ANZPE”.

All Applicants are responsible for confirming the number of Notes allocated to them prior to selling any Notes. Applicants who sell Notes before receiving their Confirmation Statement do so at their own risk.

Trading is expected to commence on a normal settlement basis on Friday 11 April 2014.

Confirmation Statements and refund cheques

Confirmation Statements which set out the number of Notes issued to each successful Applicant are expected to be despatched by Friday 4 April 2014.

Australia and New Zealand Banking Group Limited ABN 11 005 357 522

Distribution Rate

The Distribution Rate for the first Distribution Period from (and including) the Issue Date of 31 March 2014 to (but excluding) the first Distribution Payment Date is 4.1860%. The first Distribution Payment Date is expected to be 24 September 2014. The Distribution Rate is calculated as follows:


first Distribution Payment Date is expected to
Rate is calculated as follows:

be 24 September 2014.
180 day Bank Bill Rate on 31 March 2014
(first Business Day of the Distribution
Period)
2.7300%
_Plus_Margin 3.2500%
5.9800%
Multiplied by(1–the 30% Tax Rate) 0.7
Distribution Rate 4.1860%

This Distribution Rate equates to a fully franked Distribution amount of $2.0299 in respect of each Note which, subject to ANZ’s absolute discretion and no Payment Condition existing in respect of the Distribution Payment Date, is expected to be paid on Wednesday 24 September 2014. This amount and other relevant details are set out below:

Distribution in respect of each Note $2.0299
Distribution Payment Date 24 September 2014
Record date 16 September 2014
Number of days in the Distribution Period 177

Following the first Distribution Period, the Distribution Rate for the Notes will be reset half yearly and announced on ASX.

Maximum Conversion Number

The Issue Date VWAP has been calculated as $32.30. Accordingly, the Maximum Conversion Number has been set initially at:

  • in the case of a Conversion occurring on a Mandatory Conversion Date, 6.1920 ANZ Ordinary Shares per Note; and

  • in the case of a Conversion occurring at any other time, 15.4799 ANZ Ordinary Shares per Note.

For details about the calculation of these numbers and how they affect the Notes, see the ANZ Capital Notes 2 Prospectus dated 19 February 2014 ( Prospectus ) which is available online at www.anz.com.

Holders of ANZ Capital Notes 2

Following allocation of the Notes, the twenty largest holders are detailed in Attachment A to this announcement.

The distribution schedule of the Notes is set out in Attachment B to this announcement.

Participation by ANZ directors and associates in the Offer

The number of Notes issued to ANZ directors and their associates pursuant to the Offer was 3,500 in aggregate.

Buy-Back of CPS1

ANZ completed the buy-back of Reinvestment CPS1 on 31 March 2014. 6,269,434 CPS1 which were reinvested in ANZ Capital Notes 2 under the Reinvestment Offer have been removed from official quotation on ASX.

Newspaper advertisements

Tomorrow ANZ will advertise in The Australian Financial Review, The Australian, The Sydney Morning Herald and The Age the basis of allocation of Notes. A copy of this advertisement is attached to this announcement.

ANZ Capital Notes 2 Class Ruling

The Australian Taxation Office ( ATO ) has released a Class Ruling (CR 2014/22) in respect of the Notes. The Class Ruling is consistent with the Taxation Summary contained in Section 7 of the Prospectus.

A copy of the Class Ruling is available from the ANZ Shareholder Centre section of www.anz.com or the ATO website (ato.gov.au) by searching in the ATO’s Legal Database using the Class Ruling reference.

To obtain information about your allocation of ANZ Capital Notes 2 or about the Offer

Applicants can obtain information about their allocation of Notes or the Offer by calling their Syndicate Broker or the ANZ Information Line on 1800 113 399 (within Australia) or +61 3 9415 4010 (international) between 8:30am and 5:30pm (AEDT) Monday to Friday.

Unless otherwise defined, capitalised terms have the meaning given to them in the ANZ Capital Notes 2 Prospectus dated 19 February 2014.

For investor enquiries, please contact the ANZ Information Line on 1800 113 399 (Australia) or +61 3 9415 4010 (international).

For media enquiries only contact:

Stephen Ries Head of Media Relations Tel: +61 3 8654 3659 or 0409 655 551 Email: [email protected]

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE U.S. This statement does not constitute an offer of any securities for sale. The securities offered will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Attachment A: Largest 20 ANZ Capital Notes 2 holders following allocation of ANZ Capital Notes 2

UNITS       % I/C      RANK
                UBS WEALTH MANAGEMENT                                       656,693     4.08         1
                AUSTRALIA NOMINEES PTY LTD
                UCA CASH MANAGEMENT FUND                                    260,682     1.62         2
                LIMITED
                QUESTOR FINANCIAL SERVICES                                  209,638     1.30         3
                LIMITED
<TPS RF A/C>
                NAVIGATOR AUSTRALIA LTD                                     196,205     1.22         4
<MLC INVESTMENT SETT A/C>
                HSBC CUSTODY NOMINEES                                       168,399     1.05         5
                (AUSTRALIA) LIMITED
                J P MORGAN NOMINEES AUSTRALIA                               167,304     1.04         6
                LIMITED
                BNP PARIBAS NOMS PTY LTD                                    142,043     0.88         7
<DRP>
                BOND STREET CUSTODIANS LIMITED                              102,320     0.64         8
<MPPMIM - V16636 A/C>
                LIGHTNINGEDGE PTY LTD                                       100,000     0.62         9
                NETWEALTH INVESTMENTS LIMITED                                82,018     0.51        10
<WRAP SERVICES A/C>
                NULIS NOMINEES (AUSTRALIA)                                   77,661     0.48        11
                LIMITED
<NAVIGATOR MAST PLAN SETT A/C>
                BOND STREET CUSTODIANS LIMITED                               60,000     0.37        12
<MACQ MASTER DIV INCOME A/C>
                AUSTRALIAN EXECUTOR TRUSTEES                                 55,956     0.35        13
                LIMITED
<NO 1 ACCOUNT>
                CITICORP NOMINEES PTY LIMITED                                55,450     0.34        14
                PERSHING AUSTRALIA NOMINEES                                  50,203     0.31        15
                PTY LTD
<IMPLEMENTED PORTFOLIOS A/C>
                AUSTRALIAN MASTERS YIELD FUND                                50,000     0.31        16
                NO 5 LIMITED
                BALLARD BAY PTY LTD                                          50,000     0.31        17
<BALLARD BAY DISCRETIONARY AC>
                JMB PTY LIMITED                                              50,000     0.31        18
                JUNORIS PTY LTD                                              50,000     0.31        19
<JAN BROOKS FAMILY A/C>
                KOLL PTY LTD                                                 50,000     0.31        20
<NO 1 ACCOUNT>

Attachment B: Distribution Schedule of ANZ Capital Notes 2 following allocation of ANZ Capital Notes 2

1 1,001 5,001 10,001 100,001
to to to to to
1,000 5,000 10,000 100,000 (MAX)
Holders
Issuer 1,632 264 43 25 1
Chess 18,242 1,652 95 61 7
Total 19,874 1,916 138 86 8
Units
Issuer 517,301 623,952 367,931 697,973 260,682
Chess 6,142,595 3,482,123 750,449 1,614,392 1,642,602
Total 6,659,896 4,106,075 1,118,380 2,312,365 1,903,284

IMPORTANT NOTICE TO ALL APPLICANTS UNDER THE ANZ CAPITAL NOTES 2 OFFER

Australia and New Zealand Banking Group Limited ABN 11 005 357 522 ( ANZ ) is pleased to announce that the offer of ANZ Capital Notes 2 (ASX code ‘ANZPE’) ( Offer ) has successfully closed raising $1.61 billion of Additional Tier 1 Capital (prior to Offer expenses). 16.1 million ANZ Capital Notes 2 ( Notes ) have been issued at $100 each.

ANZ CAPITAL NOTES 2 ALLOCATION POLICY

  • All valid applications under the Reinvestment Offer, ANZ Securityholder Offer and General Offer have been accepted in full.

  • A scale back was applied to Applicants under the Broker Firm Offer (other than for Broker Firm Applicants under the Reinvestment Offer, who were accepted in full) and the Institutional Offer.

Applications accompanied by cheques that were subsequently dishonoured and online Applications for which BPAY® payments were not received have not received an allocation of Notes.

Reinvestment CPS1 Applicants, ANZ Securityholder Applicants and General Applicants can obtain information about their allocation of Notes by calling the ANZ Information Line on the numbers provided below.

Broker Firm Applicants should confirm their allocation of Notes with their Syndicate Broker.

DEFERRED SETTLEMENT TRADING

The Notes are expected to commence trading on the ASX on a deferred settlement basis today at approximately 12:00pm (AEDT) under the ASX code “ANZPE”.

Trading of Notes is expected to commence on a normal settlement basis on Friday, 11 April 2014.

All Applicants are responsible for confirming the number of Notes allocated to them prior to selling any Notes. Applicants who sell Notes before receiving their Confirmation Statement do so at their own risk.

CONFIRMATION STATEMENTS

Confirmation Statements which set out the number of Notes issued to each successful Applicant are expected to be despatched on Friday, 4 April 2014.

FURTHER INFORMATION

Applicants may call their Syndicate Broker or the ANZ Information Line on 1800 113 399 (within Australia) or +61 3 9415 4010 (international) between 8:30am and 5:30pm (AEDT) Monday to Friday to confirm their Notes allocation.

Unless otherwise defined capitalised terms in this advertisement have the same meaning given to them in the ANZ Capital Notes 2 prospectus dated 19 February 2014. This advertisement contains general information only and does not take into account the investment objectives, financial situation or particular needs of any investor (including financial and tax issues). Investors should obtain their own independent advice from a qualified financial adviser having regard to their own investment objectives, financial situation and needs. ANZ Capital Notes 2 have not been, and ANZ Capital Notes 2 will not be, registered under the US Securities Act of 1933, as amended ( US Securities Act ) or the securities laws of any state or other jurisdiction of the United States. ANZ Capital Notes 2 may not be offered, sold or resold in the United States, or to, or for the account or benefit of, a US person (as defined in the US Securities Act), except in a transaction exempt from, or not subject to, the registration requirements of the US Securities Act and applicable US state securities laws. ANZ Capital Notes 2 are higher risk than deposits, are not deposit liabilities of ANZ, are not guaranteed, insured or protected accounts and give holders no claim on ANZ except as provided in their terms. Your investment is subject to investment risk, including possibly delays in repayment and loss of income and principal rate of return. You may lose some or all of your money. ANZ does not guarantee the value or performance of ANZ Capital Notes 2.

® Registered to BPAY Pty Limited (ABN 69 079 137 518)

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