SYDNEY, Aug 16 (Reuters) - Australia and New Zealand Banking Group ANZ.AX is raising around A$1 billion ($767 million) in perpetual Tier 1 capital securities offering a margin of 470 to 490 basis points over 90-day bank bill swaps BBSW , it said on Tuesday.
This would be the equivalent to around 6.5 percent on a gross basis.
The margin will be determined on Aug 23 by joint lead managers ANZ, Commonwealth Bank of Australia, JPMorgan (NYSE:JPM), Morgan Stanley (NYSE:MS), Morgans, UBS and Westpac.
The offer, to close on Sept. 26, will help refinance A$1.9 billion of its existing CPS2 hybrid issue to be redeemed in late November.
The new securities, called ANZ Capital Notes 4, will be mandatorily converted into ordinary shares after 9.5-years unless there is a trigger event or change of control prior to that. ANZ also has an optional exchange on March 20 2024.
The securities are expected to be fully franked and will qualify as additional Tier 1, a form of capital required by regulators to avoid a repeat of the global financial crisis of 2007 when many banks collapsed worldwide.
ANZ's issue follows similar hybrid raisings from its Australian peers. ($1 = 1.3029 Australian dollars)