Bank of Queensland Limited
Debt Instrument Programme dated 14 December 2012
Dated 10 June 2014
Nature of the Bonds
The bonds will rank at least equally with the Issuer’s present and future unsecured and unsubordinated indebtedness, other than indebtedness mandatorily preferred by law.
12 June 2014
12 June 2018
4.00% per annum, payable semi-annually (in two coupons of 2.00%) in arrears on 12 June and 12 December in each year, including the Maturity Date.
Repayment at Par on the Maturity Date
On the Maturity Date, bondholders are scheduled to receive the Face Value and the final Coupon Payment for the last Interest Period.
The value of an investment in the Bonds may fluctuate due to various factors, including investor perceptions, worldwide economic conditions, interest rates, debt market conditions and factors that may affect Bank of Queensland’s financial performance. The following risks may also affect an investment in the Bonds:
- Liquidity Risk – An active secondary market in respect of the Bonds may never be established or may be illiquid and this would adversely affect the value at which an investor could sell the Bonds;
- Interest Rate Risks – bondholders may suffer unforeseen losses due to fluctuations in interest rates;
- Regulatory Risks - The banking industry in Australia is highly regulated, and regulatory changes may adversely impact affect Bank of Queensland’s financial performance
- Litigation Risks - Risks relating to litigation and regulatory actions;
- Operational Risks - The risk of loss resulting from inadequate internal processes and controls, people and systems or from external events.
- Default Risk - if an event of default occurs under the Bonds, or Bank of Queensland fails to perform any obligation in relation to the Bonds, such event or failure may impact on the value of an investment in the Bonds, the transferability of the Bonds and the ability of a holder to recover amounts due under the Bonds.
Key benefits include:
- interest paid quarterly in arrears;
- interest paid is floating rate
- interest paid as 100% cash;
- interest is not deferrable nor are interest payments discretionary;
- rank equally with all other senior and unsecured creditors of the Issuer.
Early Redemption by Issuer
Yes, for tax reasons
Events of Default
Events of Default include:
- Payment Default: Applicable with a 5 day cure period for interest and principal payments;
- Breach of other obligations: Applicable, with a 14 day cure period;
- Insolvency / Winding Up: Applicable
- Enforcement against assets: Applicable, with a cure period of 21 days
- Enforcement of security: Applicable, with a cure period of 14 days
- Unlawfulness: it is unlawful for the Issuer to perform or comply with any of its obligations under the bonds