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RBNZ changes affecting ANB Capital Notes

Thursday 2nd April 2020

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ANZ Bank New Zealand Limited (ANB) has been informed by the Reserve Bank of New Zealand (RBNZ) that locally incorporated banks cannot pay dividends on ordinary shares, and should not redeem capital notes at this time to further support the stability of the banking financial system during this period of economic uncertainty.

Accordingly, ANB will not be permitted to redeem the NZ$500 million of mandatory convertible perpetual subordinated securities (Capital Notes) under ticker code ANBHB on the Optional Exchange Date (25 May 2020).

The RBNZ’s decision does not affect ANB’s ability to pay interest on the Capital Notes. Interest is scheduled to be paid quarterly in arrears, is subject to ANB’s discretion and other conditions as set out in the investment statement, and is non-cumulative.

The terms of the Capital Notes also provide for their conversion into ordinary shares of Australia and New Zealand Banking Group Limited (listed on the NZX and ASX) in May 2020 or May 2022 (conversion is subject to certain conditions as set out in the investment statement of the Capital Notes).

ANB’s capital position remains strong, with total capital of $13.4 billion, or 13.6% of risk weighted assets at 31 December 20191. ANB’s total capital increased by approximately $1.6 billion between 1 October 2018 and 31 December 20191.

ANB acknowledges the steps the RBNZ is taking to promote market liquidity and stability, the flow of funding to the economy and this measure to maintain the banking system’s capital position during the COVID-19 pandemic.

Information on the Capital Notes is available in the investment statement:


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