Yesterday morning, ANZ launched a new hybrid offer that looks relatively attractive on an expected yield to call of 4.20% grossed for franking. While this is a slightly longer dated issue (6.8 years) than recent issues from NAB and CBA, the yield uplift more than compensates for the added duration on this floating rate note. In short, this is the most attractive note (relatively speaking) we’ve seen in the last year or so.
The key points of the offer are:
- ~$1bn offer
- a Reinvestment Offer for ANZ Capital Notes 1 (ANZPD), a Broker Firm Offer & a security holder offer
- The margin is expected to be between 3.00% and 3.20% pa to be determined through the Bookbuild – we expect this to come in at a margin of 300bps
- Quarterly distributions are expected to be fully or substantially franked.
- The Optional Exchange dates fall on 20 March 2028, 20 June 2028 or 20 September 2028 (first approximately 6.75 years to first call)
A copy of the Prospectus can be found www.capitalnotes6.anz.com. The broker book build is scheduled to close at 12.00pm, Monday 7 June 2021, however it will likely close early. If subscribers would like to bid into the book, please reach out noting that you would need to have / open an account at Shaw & Partners: [email protected]
MM are planning to add the new ANZ Hybrid to the Income Portfolio with a 5% weighting
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Comparative returns of longer dated Hybrids
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Comparative returns of longer dated Hybrids
