ANZ Limited (ASX:ANZ) plans to raise $750 million via a convertible preference share issue, in a move to improve the company’s Tier 1 capital.
The company’s Tier 1 capital has been reduced significantly over the last six months, following redemptions totaling around $1 billion, ANZ told investors.
The proceeds will qualify as Tier 1 capital – the figure most commonly used to judge banks’ ability to protect its bank deposits.
The preference shares will convert into ordinary shares on December 15, 2016.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.