Australia and New Zealand Banking Group Limited
A$ Debt Issuance Programme dated 8 April 2014
Dated April 2015
Nature of the TCDs
Transferable Certificates of Deposit (“TCDs”) constitute senior, direct, unconditional, unsecured and unsubordinated obligations of the Issuer and will rank at least equally with all other unsecured and unsubordinated obligations of the Issuer except liabilities mandatorily preferred by law. The TCDs do not constitute protected accounts in Australia for the purposes of the Banking Act.
3 month Bank Bill Rate plus 0.82%, payable in arrears on 17 January, 17 April, 17 July and 17 October in each year, including the Maturity Date.
Repayment at Par on the Maturity Date
On the Maturity Date, holders are scheduled to receive the Face Value and the final Coupon Payment for the last Interest Period
The value of an investment in the TCDs may fluctuate due to various factors, including investor perceptions, worldwide economic conditions, interest rates, debt market conditions and factors that may affect the Issuer’s financial performance. The following risks may also affect an investment in the TCDs:
- Lack of liquidity - in the secondary market for the TCDs;
- Interest rate risks – holders 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 the Issuer’s financial performance;
- Banking Act – The TCDs constitute direct, unsubordinated and unsecured deposit liabilities of ANZ , ranking pari passu with all other senior, direct, unconditional, unsecured and unsubordinated obligations of ANZ, however, they are not protected accounts within the meaning of the Banking Act 1959, as such there will likely be significant liabilities of ANZ that are likely to be mandatorily preferred liabilities;
- 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 TCDs, or the Issuer fails to perform any obligation in relation to the TCDs, such event or failure may impact on the value of an investment in the TCDs, the transferability of the TCDs and the ability of a holder to recover amounts due under the TCDs.
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 7 day cure period for principal and interest payments
- Breach of other obligations: Applicable, with a 30 day cure period;
- Insolvency / Winding Up: Applicable;
- Enforcement against assets: Applicable, with a cure period of 45 days.