Firm: King & Wood Mallesons (ME Bank)
Deal: ME Bank has been advised on Australia’s third-ever wholesale Additional Tier 1 Capital deal – and the first to feature write-off only (rather than conversion) at the point of non-viability, according to a statement from KWM.
Value: $200 million
Key players: The KWM legal team was led by partners Jo Dodd, Ian Paterson and Darren McClafferty, with support from senior associate Sylvester Urban, associate Charlene Soh and solicitor Kendy Ding.
Deal significance: This transaction saw ME Bank issue $200 million of Additional Tier 1 Capital-qualifying unrated Capital Notes via National Australia Bank and Westpac Institutional Bank, the statement from KWM said.
The firm noted that the transaction is intended to support ME’s capital adequacy, and is the third AT1 deal targeted at wholesale investors since the introduction of the Basel III capital requirements. In addition, it is the first wholesale AT1 transaction in Australia from an unlisted ADI.
Commenting further on the transaction, KWM partner Jo Dodd said: “We are very pleased to have advised ME Bank on this transaction and helped position the wholesale format AT1 issuance space as a viable fundraising option for banks.”