Westpac Banking Corporation has gone to the market with the launch of a new security that it says is not connected with its proposed merger with St George Bank.
Westpac announced that it is seeking to raise around $600 million via the hybrid Tier 1 security, known as the Westpac Stapled Preferred Securities.
Commenting on the move, Westpac’s chief financial officer Phil Coffey said it would further strengthen Westpac’s Tier 1 capital, which was particularly important in the current operating environment.
Westpac said that given the structure of the offer, the Westpac SPS might be attractive to Australian retail investors and those institutions that could benefit from a full-franked distribution.
The bank said the offer was expected to pen on June 26 and would be made via a prospectus that had been lodged with the Australian Securities and Investments Commission today.
