Investing

Amp Bank Limited

Diversified Financials

Amp Bank Limited

Latest price

$ 101.34

  • ASX code
    YTMF17
  • Maturity date
    24-May-2021
  • Capital structure
    Senior Unsecured
  • Coupon type
    FLOATING
  • Coupon P.A
    BBSW + 1.35%
  • Issue Date
    24-May-2016
  • Next ex. distribution date
    14-Feb-2019
  • Next interest payment date
    25-Feb-2019
  • Payment frequency
    Quarterly

Issuer

AMP Bank Limited (“AMP”)

Guarantor

AMP Group Holdings Limited

Base Terms

Debt Issuance Programme dated 4 May 2016

Pricing Supplement

Dated 20 May 2016

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

  • 24 November 2018
  • 24 February 2019
  • 24 May 2019
  • 24 August 2019
  • 24 November 2019
  • 24 February 2020
  • 24 May 2020
  • 24 August 2020
  • 24 November 2020
  • 24 February 2021
  • 24 May 2021 - Maturity Date

Issue Size

A$500,000,000

Issue Date

24 May 2016

Maturity Date

24 May 2021

Interest Rate

3 Month BBSW plus 1.35%, payable in arrears on 24 February, 24 May, 24 August and 24 November in each year, including the Maturity Date.

Reset Dates

24 February, 24 May, 24 August and 24 November in each year.

Reference Rate

3 Month BBSW

Interest Margin

1.35%

Denomination

A$10,000

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 Coupon Period.

Key Risks

The value of an investment in AMP Notes may fluctuate due to various factors, including investor perceptions, worldwide economic conditions, interest rates, debt market conditions and factors that may affect AMP’s financial performance. The following risks may also affect an investment in AMP Notes:

  • Lack of liquidity – in the secondary market for AMP 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 affect AMP’s financial performance;
  • Litigation risks – Risks relating to litigation and regulatory actions;
  • Banking Act – The AMP Notes are not protected accounts within the meaning of the Banking Act 1959, as such there will likely be significant liabilities of the Issuer that are mandatorily preferred;
  • Operational risks –he 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 AMP Notes, or AMP fails to perform any obligation in relation to the AMP Notes, such event or failure may impact on the value of an investment in the AMP Notes, the transferability of the AMP Notes and the ability of a holder to recover amounts due under the AMP Notes.

Key Benefits

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;
  • Obligations Unenforceable: Applicable.

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