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Description

For queries in relation to CPS1, please call 1800 113 399 (Australia), 0800 174 007 (New Zealand) or +61 3 9415 4010 (international).
 
To view the prospectus, please select the link below:
 
To view the announcement made by ANZ in relation to the allocation of CPS1, please select the link below:
 
 

FAQ

 

Q. What are CPS1?

CPS1 are fully paid preference shares issued by ANZ pursuant to a prospectus dated 4 September 2008 (CPS1 Prospectus), which will mandatorily convert into Ordinary Shares on 16 June 2014 (subject to certain conditions being satisfied). However ANZ may elect for a third party to purchase the CPS1 rather than delivering the Ordinary Shares issued on Conversion to the investor. CPS1 provides investors with Dividends that are preferred, non-cumulative, based on a floating rate and are expected to be fully or substantially franked. Dividends are scheduled to be paid quarterly in arrears on the Dividend Payment Dates, subject to the Payment Tests. You should read the CPS1 Prospectus (PDF 736kB) for a full description of CPS1.
 
 

Q. What is Mandatory Conversion?

CPS1 Holders will receive Ordinary Shares on Conversion of the CPS1 on the earliest Mandatory Conversion Date unless the Mandatory Conversion Conditions are not satisfied or Resale occurs. Upon Conversion, CPS1 Holders will receive approximately $102.56 worth of Ordinary Shares per CPS1 based on the VWAP of Ordinary Shares during the 20 Business Days before the Mandatory Conversion Date.
 
For more information on the Mandatory Conversion you should read the CPS1 Prospectus (PDF 736kB).
 
 

Q. When is the Mandatory Conversion Date?

The Mandatory Conversion Date will be 16 June 2014 provided that all of the Mandatory Conversion Conditions are satisfied. If any of the Mandatory Conversion Conditions are not satisfied with respect to 16 June 2014, then the Mandatory Conversion Date will be deferred until the next Dividend Payment Date on which all of the Mandatory Conversion Conditions are satisfied.
 
For more information on Mandatory Conversion Date you should read the CPS1 Prospectus (PDF 736kB).
 
 

Q. How does Resale interact with Mandatory Conversion?

Before a possible Mandatory Conversion Date, ANZ may choose to arrange that all CPS1 on issue be acquired from CPS1 Holders by a third party (Nominated Purchaser) on the possible Mandatory Conversion Date. This process is called Resale. Resale can occur whether or not the Mandatory Conversion Conditions are satisfied.
 
If Resale is chosen by ANZ, CPS1 Holders will be notified and on the possible Mandatory Conversion Date they will receive $100 from the Nominated Purchaser for each CPS1 rather than a variable number of Ordinary Shares issued by ANZ.
 
 

Q. What are the Mandatory Conversion Conditions?

The Mandatory Conversion Conditions are:
 
  • First Mandatory Conversion Condition: the VWAP of Ordinary Shares on the 25th Business Day before but not including a possible Mandatory Conversion Date is greater than 56% of the Issue Date VWAP.
  • Second Mandatory Conversion Condition: the VWAP of Ordinary Shares during the period of 20 Business Days before (but not including) a possible Mandatory Conversion Date is greater than 51.28% of the Issue Date VWAP.
  • Third Mandatory Conversion Condition: Ordinary Shares remain listed and admitted to trading on ASX, and trading of Ordinary Shares has not been suspended for at least five consecutive Business Days prior to a possible Mandatory Conversion Date and the suspension is continuing on the possible Mandatory Conversion Date.
For more information on the Mandatory Conversion Conditions you should read the CPS1 Prospectus (PDF 736kB).
 
 

Q. When will the Dividend Rate be set?

The Margin for the Dividend Rate, determined by the Bookbuild, is 2.50% per annum. The Dividend Rate for each Dividend Period will be set on the first Business Day of each Dividend Period and will be calculated using the following formula:
 
Dividend Rate = (Bank Bill Rate + Margin) x (1 - Tax rate)
 
The Bank Bill Rate used in calculating each Dividend will be the Bank Bill Rate on the first Business Day of the Dividend Period. You should read the CPS1 Prospectus (PDF 736kB) for more details on how the Dividend Rate will be set.
 
 

Q. How will the Dividend be calculated for each Dividend Period?

Dividends scheduled to be paid on each Dividend Payment Date will be calculated using the following formula:
 
Image goes here....
 
where:
Dividend Rate = (Bank Bill Rate + Margin) x (1 - Tax rate) 
Issue Price means $100 per CPS1; and
N means the number of days in the Dividend Period.
 
ANZ proposes to announce on ASX the Dividend Rate for each Dividend Period.

 

Q. What is the Issue Date VWAP?

The Issue Date VWAP was calculated as $17.35. Accordingly, the Maximum Conversion Number is set at 11.5274 ANZ ordinary shares per CPS1. For details about the calculation of these numbers and how they affect CPS1, see the CPS1 Prospectus (PDF 736kB).
 

 

Q. How do I find out about my CPS1 allocation?

You may find out how many CPS1 you hold by calling the ANZ Information Line on 1800 113 399 (within Australia), 0800 174 007 (within New Zealand) or +61 3 9415 4010 (international) or by asking your Syndicate Broker.
 
 

Q. What is Non-Innovative Residual Tier 1 Capital?

CPS1 are classified as Non-Innovative Residual Tier 1 Capital under APRA's capital adequacy guidelines. Banks can currently issue both Innovative and Non-Innovative hybrid capital instruments totaling up to 25 percent of net Residual Tier 1 capital. Of this, Innovative hybrid securities are limited to 15 percent, therefore banks need to issue a minimum of 10 percent of their hybrid capacity in the form of Non-Innovative securities if they want to maximise the hybrid component of the capital mix.
 
For more information see the Prospectus or APRA's website at www.apra.gov.au
 
 

History

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