Wealth Focus has secured access to the ANZ Capital Notes 4 IPO. Investors looking to apply for a broker firm allocation will need to contact us on 1300 559 869 by close of business on Tuesday 23rd August.
Allocations may still be available after this date but will be allocated on a first come first served basis.
ANZ Capital Notes 4
ANZ’s much anticipated Capital Notes offer has now been launched. Although the relatively longer term of 7.5 years to initial call is seemingly in line with the secondary market, the higher running yields offered by this year’s issues are likely to be more attractive to investors.
The word on the street is this issue is closing early due to significant demand and we recommend investors request an allocation sooner rather than later.
This issue is primarily being used to repay the $2 Billion of ANZPA (repayable in Dec). Considering the likely to demand to roll investments into this new issue, the guide of $1 Billion being raised seems low and stock is likely to be scarce for new money. Investors already holding ANZPA and looking to move into this new issue should contact us requesting a Rollover Allocation.
Our view is hybrid yields to maturity remain relatively high and ANZPG is priced in line with the market at the bottom end of the range of 4.7% over the BBSW (indicative rate of 6.46%-6.66%pa – 19/08/16)., however, the higher running yield means this is likely to be a more attractive investment than previous years’ issues.
•Broker firm offer – Our allocation through the broker firm offer means investors are more likely to achieve their desired allocation without waiting for the shareholder offer (there is no general offer).
•Limited Offer – The offer is to raise $1 Billion, with the ability to raise more or less. The Notes will be traded on the ASX.
•Income – ANZ Capital Notes 4 provide holders with quarterly fully franked distributions.
•High level of income – The indicative distribution rate is 4.7%-4.9% over the 90 day Bank Bill Swap Rate (1.76% – 19/08/16) for an indicative rate of 6.46% pa.
•Rollover Offer (ANZPA) – Existing investors in ANZ CPS2, ANZPA, are able to roll their investment into ANZPG (just contact us with your investor reference and request a rollover allocation).
•Minimum investment – $10,000 (this is a Wealth Focus minimum)
•Issue Price – $100
Find out more
If you would like further information on ANZ Capital Notes 4 Offer, please click on the links below:
•View our online webinar – An Introduction to Fixed Income
Please call us on 1300 559 869 to ask us to secure an allocation.