Bendigo and Adelaide Bank will pay a dividend rate of between 500 and 550 basis points over the 180-day bank bill swap rate to investors in a new issue of convertible preference shares.
The bank launched the CPS offer yesterday and is aiming to raise A$125 million. The bank will use A$89 million of the capital raised to redeem an issue of reset preference shares.
The preference shares are fully paid, non-cumulative, perpetual and convertible. The will qualify as tier-one capital under the current prudential framework and will qualify as additional tier-one under the Basel III...
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