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Westpac announces NZ$250 million capital raising

Westpac has announced a new bank notes offer aimed exclusively at New Zealand investors, following the success of the bank's capital notes offer earlier this year.

The new subordinated notes offer will open this month, and the notes have a 10-year term, set to be repaid in September 2026.

Westpac will offer up to NZ$250 (AU$234.28) million of unsecured, subordinated, fixed-rate notes with the ability to accept unlimited oversubscriptions.

The notes are being issued to raise money to meet Australian Prudential Regulation Authority (APRA) requirements and will be treated as tier-two capital under APRA’s Basel III prudential standards.

The issue comes a few weeks after Westpac's previous capital notes offer, which was open to Australian investors but not those in New Zealand, raised $1.7 billion in capital.

The new notes will have a fixed interest rate, which will be re-set in 2021 when the first optional redemption becomes available to noteholders.

[Related: Housing downturn would wipe out major bank capital]

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