Herbert Smith Freehills advises Joint Lead Managers on AMP's A$230 million Capital Notes issue

Herbert Smith Freehills has advised the Joint Lead Managers of AMP Limited’s (AMP) offer of new Tier 1 hybrid securities known as AMP Capital Notes 2 (AMPCN2), which are fully paid, perpetual, unsecured, subordinated, non-cumulative, mandatorily convertible notes issued by AMP (Offer).

 The Offer was intended to raise A$200 million, but was increased to at least A$230 million following the institutional bookbuild.

AMPCN2 are offered at an issue price of A$100.

APRA has confirmed that AMPCN2 will qualify as Additional Tier 1 Capital under the Basel III capital adequacy framework. The proceeds received by AMP under the Offer will be used to strengthen AMP’s capital base and meet general funding requirements.

Herbert Smith Freehills acted for four Joint Lead Managers, being UBS AG, Australia Branch (who was also the arranger), ANZ Securities Limited, Morgans Financial Limited and National Australia Bank Limited.

The Herbert Smith Freehills team was led by partner Philippa Stone with support from solicitor Ben Robinson and senior associate Lucy Hall.

Philippa Stone said: “We are very pleased to have acted for the joint lead manager syndicate on this transaction, following our recent roles on a number of significant bank hybrids. It is encouraging to see the continued strength of the Australian hybrid market.”

AMP was advised by King & Wood Mallesons.

Herbert Smith Freehills’ capital markets team has also recently acted for:

• The joint lead managers on Westpac Banking Group’s A$1.25 billion offer of Westpac Capital Notes 3;
• The joint lead managers on ANZ’s A$970 million offer of ANZ Capital Notes 3;
• The joint lead managers on Macquarie Bank Limited’s A$429 million offer of Macquarie Bank Capital Notes; and
• Commonwealth Bank of Australia on its A$3 billion offer of PERLS VII (and concurrent PERLS V reinvestment offer).