Macquarie Bank has launched an issue of capital notes, seeking A$400 million or more with an offer that includes an indicative margin of 290 to 310 basis points and a first call date of September 2028.

Macquarie Bank Capital Notes 3 are subordinated, non-cumulative, unsecured and perpetual, and will qualify as regulatory capital.

If the notes are not redeemed, they will convert to Macquarie Group shares in September 2031.

Distributions are expected to be franked at the same rate as dividends on Macquarie Group ordinary shares, which is currently 40 per cent.

In June, ANZ issued ANZ Capital Notes 6, with a margin of 300 bps and a first call date of March 2028.

Macquarie Bank is set to issue at a slightly tighter margin and with a longer term.

In February CBA issued PERLS XIII Capital Notes, with a margin of 275 bps and a first call date of October 2026.

The only other hybrid issue this year, also in February, was Macquarie Group’s $500 million issue, Macquarie Capital Notes 5, which was priced at a margin of 300 bps and has a call date of September 2027.