Westpac have recently launched a new Hybrid Security as a roll-over of an existing security (WBCPG) plus a new money offer. The broker bookbuild was completed last week and the margin set at 2.9% over the 90 day bank bill rate. Bidding was very strong and I got ~15% of the bid amount given the high proportion of existing investors electing to roll into the new security. There is a security holder offer for existing share / hybrid holders.
The market for tier 1 bank hybrids is sitting around a margin of ~2.65%, meaning the 2.90% is relatively attractive. It is a longer dated issue ~8 years, however when compared to the recent Macquarie Hybrid which also paid a 2.90% margin, this WBC issue is more attractive.
MM is positive the new WBC hybrid
