Bank of Queensland Limited
Debt Instrument Programme dated 14 December 2012
Dated 3 November 2014
Nature of the TDs
The Notes are direct, unsubordinated and unsecured obligations of the Issuer and will rank equally among themselves and at least equally with all other unsecured and unsubordinated obligations of the Issuer, except liabilities mandatorily preferred by law.
3 month Bank Bill Rate plus 1.07%, payable in arrears on 6 February, 6 May, 6 August and 6 November 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 Notes 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 Notes:
- Lack of liquidity - in the secondary market for the Notes;
- 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;
- 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 the Notes, or the Issuer fails to perform any obligation in relation to the Notes, such event or failure may impact on the value of an investment in the Notes, the transferability of the Notes and the ability of a holder to recover amounts due under the Notes
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 principal and interest payments
- Breach of other obligations: Applicable, with a 14 day cure period;
- Unlawfulness: It becomes unlawful for the Issuer to perform or comply with any one or more of its obligations under the Notes;
- 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.