Bank of Queensland has closed its BOQ Capital Notes 3 offer raising $400 million through the issue of four million Capital Notes 3 for $100 each.
The Capital Notes 3 are expected to begin trading on 15 November 2022 under the ASX code BOQPG. The first distribution is expected to be paid on 15 March 2023. The distribution rate for the first payment will be 4.5031 percent per annum, based on the BBSW Rate 3.033% plus margin of 3.40% per annum x 0.70.
BOQ had originally sought to raise $300 million. The bank will use funds raised for general funding and corporate purposes.
Separately, BOQ has also announced that it intends to redeem all of the $200 million Wholesale Capital Notes issued by Members Equity Bank Limited on 28 November 2017. BOQ succeeded as issuer on 28 February 2022. Members Equity Bank (ME Bank) accepted a takeover offer from BOQ in 2021.
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In its ASX announcement, BOQ said: “BOQ confirms it has received APRA’s prior written approval and intends to redeem all of the Notes on the Optional Redemption Date. BOQ’s redemption of the Notes does not imply or indicate that BOQ will in the future exercise any right it may have to redeem any other outstanding regulatory capital instruments issued by BOQ. Any such redemption would also be subject to the prior written approval of APRA (which may or may not be given).”
