Bank of Queensland has launched an issue of hybrid securities, seeking A$300 million or more of capital and with expected pricing of 340 to 360 basis points over the three-month bank bill swap rate.

The expected margin on the transaction is more in line with the pricing of issues by Westpac and NAB in June, rather than the narrow margin on the Commonwealth Bank capital notes issued last week.

CBA raised A$1.77 billion with its latest hybrid issue, PERLS XV, pricing at a margin of 285 bps over three-month BBSW. The CBA notes have a first call date of June 2028.

Westpac, NAB and Macquarie Group all issued hybrids in June. Westpac’s issue was priced at a margin of 340 bps, NAB’s at 315 bps and Macquarie’s at 370 bps.

BOQ Capital Notes 3 will have a first call date of November 2028 and a mandatory conversion date of June 2031. The notes are perpetual and distributions are discretionary and non-cumulative. Distributions are expected to be fully franked.

The bank said proceeds would be used for general corporate and funding purposes, but it will consider using them to redeem BOQ 2017 Wholesale Capital Notes, which have a call date next month.