Westpac Group Pillar 3 Report March 2013 - Iguana IR Sites

PILLAR 3 REPORT
APPENDIX III - CAPITAL INSTRUMENTS
The key features of Westpac’s Additional Tier 1 and Tier 2 capital instruments are summarised in this appendix.
APRA has approved Westpac capital instruments issued prior to 31 December 2012 for transitional arrangements
under Attachment K of APS111 1 (transitional instruments). Transitional instruments will be phased out from
inclusion in regulatory capital from 1 January 2013 and are eligible as regulatory capital until their first call date or
as determined by APRA.
Additional Tier 1 Capital Instruments
Trust Preferred Securities 2003 (TPS 2003)
Instrument
Face Value
Listing
Regulatory Capital
Classification
Trust Preferred Securities issued by Westpac Capital Trust III.
The proceeds from the issue were ultimately invested in convertible debentures
issued by Westpac New Zealand branch.
USD 750 million
Not listed
Additional Tier 1 Capital
Issue Date 13 August 2003
Distributions
Distribution Rates
Preferred, non-cumulative fixed rate distributions, subject to the satisfaction of
certain distribution payment conditions including Westpac having sufficient
distributable profits.
5.819% p.a. up to but excluding 30 September 2013; and
US LIBOR + 2.05% p.a. from and including 30 September 2013.
Distribution Payments Semi-annually in arrears (31 March & 30 September) up to and including 30
September 2013; and
Quarterly in arrears (31 March, 30 June, 30 September & 31 December) from and
including 31 December 2013.
Franked Distributions
No
Step-Up Date 30 September 2013
Distribution Rate after
Step-Up Date
Holder Redemption Rights
Issuer Redemption Rights
Conversion into Preference
Shares
Conversion into Ordinary
Shares
Secured or Unsecured
Ranking in Winding-Up
Accounting Treatment
US LIBOR + 2.05% p.a. (including a one time step-up of 1%)
None
Westpac may redeem TPS 2003 on or after 30 September 2013 or earlier upon
the occurrence of certain specified circumstances with APRA’s prior written
approval, if required.
TPS 2003 will automatically be redeemed for American Depository Receipts
representing Westpac preference shares on 30 September 2053, or earlier in the
event that a distribution is not made or in certain other specified circumstances.
No
Unsecured
Rank in priority to Westpac ordinary shares and equally with equal ranking capital
securities but behind all senior creditors and depositors.
Equity - Non-controlling Interests
1 Prudential Standard APS111 Capital Adequacy: Measurement of Capital.
80