Funds Focus

ANZ Bank has just announced the launch of a new income offer: ANZ Capital Notes.The first round of access is through a broker firm allocation, prior to shareholder offer and listing in August.

The Notes will pay a semi annual coupon of 3.4%-3.6% (rate determined by the bookbuild) over the 180 day bank bill swap rate (BBSW), which was 2.82% as of 2nd July, with an initial indicative rate of 6.22%-6.42%pa. (The first pricing is due to be set on date of issue) The Notes are expected to redeem on

This last week has seen the launch of four new income offers: ANZ Subordinated Notes, Colonial Group Subordinated Notes, Tabcorp Subordinated Notes and Westpac Convertible Preference Shares (CPS). We have produced this overview in an attempt to provide some clarity for investors in making a comparison of the offers available.

 The current focus on income
The recent flood of fixed income issues is a result of the ongoing market volatility and the increased cost of overseas funding. Falling

ANZ has just announced the launch of its new hybrid security, CPS 2. The first round of funding is open through a broker firm allocation, prior to general offer and institutional offer before listing in December.

The securities will be rated A+ by agency Standard & Poor’s meaning they are an investment grade hybrid considered relatively low risk.

CPS 2 will pay a quarterly coupon of between 3.10% and 3.30% over the 90 day bank bill swap rate (BBSW), currently 3.90%, with exact