Big Law

New bank hybrid materialises

Two international firms have advised on a new Tier 1 hybrid securities, known as AMP Capital Notes 2.

November 04, 2015 • By Felicity Nelson

Firms: Herbert Smith Freehills (joint lead managers including UBS AG, Australia Branch, ANZ Securities Limited, Morgans Financial Limited and NAB Limited); King & Wood Mallesons (AMP Limited)

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Deal: The joint lead managers of AMP Limited (AMP) made an offer of new Tier 1 hybrid securities, known as AMP Capital Notes 2.

Value: $230 million

Area: Finance

Key players: The HSF team was led by partner Philippa Stone (pictured), solicitor Ben Robinson and senior associate Lucy Hall.

Deal significance: AMP Capital Notes 2 are fully paid, perpetual, unsecured, subordinated, non-cumulative, mandatorily convertible notes issued by AMP.

According to a release by HSF, APRA has confirmed that the notes will qualify as Additional Tier 1 Capital under the Basel III capital adequacy framework.

The proceeds received by AMP under the offer will be used to strengthen AMP’s capital base and meet general funding requirements.

HSF acted for joint lead managers including UBS AG, Australia Branch, ANZ Securities Limited, Morgans Financial Limited and NAB Limited.

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“We are very pleased to have acted for the joint lead manager syndicate on this transaction, following our recent roles on a number of significant bank hybrids,” said Ms Stone.

“It is encouraging to see the continued strength of the Australian hybrid market.”

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