Westpac’s latest hybrid deal, for which it mandated nine joint lead managers on Monday, is expected to shoot well past $1 billion.
Street Talk understands the big four bank is aiming for a circa $1.5 billion deal size. It is expected to launch next week, thanks to Melbourne Cup – and Westpac’s annual results – hogging investors’ attention this week.
Flagging the mooted deal on Monday morning, Westpac said it had hired nine joint lead managers – Westpac Institutional Bank, ANZ Securities, CBA, Morgan Stanley, Morgans, NAB, Ord Minnett, Shaw and Partners and UBS – as well as three co-managers across Bell Potter, LGT Crestone Wealth Management and Wilsons.
The issue is expected to include a reinvestment offer for eligible Westpac Capital Notes 6 holders. It was announced alongside a 26 per cent jump in Westpac’s full-year profits to $7.2 billion, helped by strong growth in its institutional banking business. The bank also said it would run a $1.5 billion buyback and a 72¢ final dividend.
The new hybrid deal comes nearly 1½ years after Westpac last printed its last one.