Australia and New Zealand Banking Group Limited
A$ Debt Issuance Programme dated 21 February 2017
Dated 3 March 2017
Nature of the Bonds
Direct, unconditional and unsecured 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 Bonds are not protected accounts for the purposes of the Banking Act. In addition, the Bonds are not guaranteed or insured by the Australian Government or under any compensation scheme of the Australian Government, or by any other government, under any other compensation scheme or by any government agency or any other party.
Coupon Schedule to Maturity
- 7 December 2018
- 7 March 2019
- 7 June 2019
- 7 September 2019
- 7 December 2019
- 7 March 2020
- 7 June 2020
- 7 September 2020
- 7 December 2020
- 7 March 2021
- 7 June 2021
- 7 September 2021
- 7 December 2021
- 7 March 2022 - Maturity Date
7 March 2017
7 March 2022
3 month Bank Bill Rate plus 1.00%, payable in arrears on 7 March, 7 June, 7 September and 7 December in each year, including the Maturity Date.
7 March, 7 June, 7 September and 7 December in each year.
3 Month BBSW
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 ANZ 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 ANZ Notes:
- 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 ANZ Notes constitute direct, unsubordinated and unsecured 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 ANZ Notes, or the Issuer fails to perform any obligation in relation to the ANZ Notes, such event or failure may impact on the value of an investment in the ANZ Notes, the transferability of the ANZ Notes and the ability of a holder to recover amounts due under the ANZ 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 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.