ANZ Banking Group Ltd will redeem $US350 million ($A384 million) of trust securities, reducing the company's Tier 1 capital to about 9.3 per cent.
The bank will pay $US1,000 each for the 350,000 trust securities, which comprise a preference share stapled to notes paying an interest rate of 4.484 per cent, Melbourne-based ANZ said in a statement on Friday.
The securities qualified as innovative Tier 1 capital, as defined by the Australian Prudential Regulation Authority.
ANZ will redeem the preference shares for cash on the first call date of January 15.
ANZ's Tier 1 ratio was at 10.6 per cent at September 30. Adjusting for recent takeovers of Royal Bank of Scotland Plc assets in Asia and the remainder of the joint venture with ING, the ratio declines to 9.5 per cent, with the redemption of the trust securities taking it down to about 9.3 per cent.
© 2009 AAP
