Westpac raises $750M in rare US-dollar Tier 2 note sale
What's the deal? WestpacDealroom has a profile for this one. Try Dealroom → has raised US$750 million through 6.252% fixed-rate subordinated notes due November 13, 2037. The bank issued the notes on November 13, 2026, under its US$50 billion US Medium-Term Note Program.
Why now? The notes are expected to qualify as Tier 2 regulatory capital under the Australian Prudential Regulation Authority's (APRA) Basel III standards. Proceeds, net of issuance costs, will count as loan capital and fund general corporate purposes.
How big is it? The round sits in the 92nd percentile among all post-IPO debt deals in Australia, making it one of the larger such raises on record. Even so, Westpac expects the issuance to lift its total capital ratio on a Level 2 basis by less than 0.3%, and says it will not materially affect its financial position.
The fine print: If APRA deems Westpac non-viable, the notes may convert into ordinary shares, capped at 40,203.2034 shares per note based on an issue-date volume-weighted average price of US$23.5. Should conversion not occur within five ASX business days of APRA's notice, the notes are written off entirely, ending all holder rights.
The move extends Westpac's capital program into the US-dollar market. In August 2026, the bank raised US$970.6M through callable Tier 2 notes, and across FY26 it issued US$1.42B of Tier 2 instruments while redeeming US$1.29B.
The signal: With a FY26 CET1 ratio of 12.5%, above its 11.25% target, and an overall capital ratio of 21.5%, Westpac is not raising out of urgency. The deal reads as routine balance-sheet management — diversifying funding sources and pushing maturities out to 2037.
Read more: kalkinemedia.com
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