Jurisdiction - Australia
Herbert Smith Freehills Advises Joint Lead Managers On Macquarie’s AUD 400m Capital Notes Issue.

22 September, 2014


Herbert Smith Freehills has advised the Joint Lead Managers, being Macquarie Capital (Australia) Limited (which was also the Sole Arranger), ANZ Securities, Citi, CBA, Evans and Partners, J.P. Morgan, NAB and Morgans Financial, on Macquarie Bank Limited’s (MBL) offer of new Tier 1 hybrid securities known as Macquarie Bank Capital Notes (BCN), which are fully paid, unsecured, subordinated, non-cumulative, mandatorily convertible notes issued by MBL. The offer is intended to raise AUD 400m, with the ability to raise more or less.


The team was led by partner Philippa Stone. Herbert Smith Freehills Executive Counsel, Lauren Magraith, said “Having acted on almost all of the major bank offerings of Basel III compliant hybrid securities, we are delighted to again be acting for the Joint Lead Manager syndicate on Macquarie’s second offering of such securities since the introduction of Basel III, being the Macquarie Bank Capital Notes.”


BCN are offered at an issue price of AUD 100 and are expected to be quoted on the ASX.


APRA has confirmed that BCN will qualify as Additional Tier 1 Capital under the Basel III capital adequacy framework. The proceeds received by MBL under the offer will be used for general corporate funding and capital management purposes.


Greenwoods & Freehills are advising MBL in relation to taxation.


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