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Westpac Banking ( (AU:WBC) ) has shared an update.
Westpac Banking Corporation has issued SGD 500 million of fixed rate reset callable subordinated instruments due 2038, which are expected to qualify as Tier 2 regulatory capital under APRA’s Basel III framework. The proceeds, classified as loan capital and used for general corporate purposes, are expected to lift Westpac’s total capital ratio on a Level 2 basis by less than 0.2%, with no material impact on its overall financial position.
The instruments carry loss‑absorbing features, including mandatory conversion into ordinary shares or potential write‑off if APRA deems Westpac non‑viable, reinforcing the bank’s ability to absorb stress in line with regulatory expectations. The structure supports Westpac’s strategy to diversify its capital funding sources, while investors in the notes assume significant conversion and write‑off risk tied to APRA’s non‑viability determination and conversion caps that may limit value recovery.
More about Westpac Banking
Westpac Banking Corporation is one of Australia’s major banking and financial services institutions, providing retail, business, and institutional banking products across Australasian and global markets. The bank maintains a diversified funding base and actively issues regulatory capital instruments to support its balance sheet strength and meet prudential requirements.
See more data about WBC stock on TipRanks’ Stock Analysis page.