ANZ plans $Ibn raising

ANZ’s move to strengthen its capital position through a new notes offer follows a series of hybrid deals from big banks.

ANZ is planning to raise around $1 billion through a new notes offer designed to strengthen its core capital position.

The bank (ANZ) told investors the hybrid raising — ANZ Capital Notes 4 — would qualify as additional tier-1 capital under regulatory guidelines, with the funds raised to refinance convertible preference shares issued in December 2009 and “for general corporate purposes”.

ANZ said it reserved the right to increase or decrease the size of the offer depending on investor demand.

The action follows a series of hybrid deals from the big four banks as they look to boost tier-1 capital, with NAB recently raising $1.35 billion, Westpac securing $1.45bn and Commonwealth Bank tapping investors for $1.25bn.

It also comes on the heels of a US dollar-denominated offer to wholesale investors from ANZ in June, which raised $US1bn ($1.3bn).

The latest offer is expected to open on August 24, with a bookbuild held the day prior to determine the margin. It is expected to fall in a range between 4.7 and 4.9 per cent.

The joint lead managers on the crowded deal include ANZ, Commonwealth Bank, JP Morgan, Morgans, Morgan Stanley, UBS and Westpac, while Crestone and Ord Minnett have been appointed as co-managers.