Westpac issues A$1bn subordinated notes to boost capital

Westpac Banking Corporation confirmed the issuance of A$1,000,000,000 Fixed Rate Subordinated Notes, due 13 November 2045, on 13 November 2025. These Tier 2 Subordinated Notes are expected to contribute to Tier 2 regulatory capital under the Basel III framework and will be used for general corporate purposes, increasing Westpac's total capital ratio on a Level 2 basis by less than 0.3%.

The notes carry an interest rate of 6.135% per annum, payable semi-annually in arrears, amounting to A$306.75 per Denomination. The issue price is 100% of the Denomination of A$10,000, with a minimum aggregate consideration of A$500,000 for offers or transfers in Australia.

A key feature of these notes is their loss absorption mechanism. If the Australian Prudential Regulation Authority (APRA) deems Westpac non-viable, the notes may be converted into ordinary shares in Westpac's capital or immediately written-off. The Maximum Conversion Number for ordinary shares is set at 1,276.4871 per Tier 2 Subordinated Note, based on an Issue Date VWAP of A$39.17.