ANZ National raises NZ$835 mln Tier 2 capital

(For the latest Australia and New Zealand bond news, double
click on [AU/CRD] and then double click on the ID number)

SYDNEY, April 18 (Reuters) - ANZ National Bank, a unit of
Australian & New Zealand Banking Group Ltd (ANZ.AX), said it
has raised NZ$835 million ($663 million) in upper Tier 2
capital.

The offer, also lead managed by ANZ, included NZ$435
million in oversubscriptions.

The issue will pay a coupon of 9.66 percent, the equivalent
to the margin of 200 basis points over swap rate that it set in
March when it initially launched the offer.

The bonds are perpetual, unsecured, deeply subordinated and
callable after five years.

Upper tier 2 capital is not a common type of capital in New
Zealand, where banks typically raise Tier 1 or lower Tier 2
capital.

The bank said it opted for this relatively new instrument
because it costs less than equity or Tier 1 capital while
providing a higher quality of capital than lower Tier 2.

Tier 1 capital is the highest and most expensive form of
capital because it is the closest to equity.

"New Zealand is a good market for this type of instrument,"
said Jeremy Robson, chief financial officer at ANZ National.

Unlike in Australia, retail investors in New Zealand are
keen bond buyers due to an underperforming share market, a high
interest rate environment and a lack of a compulsory pension
scheme.

Over 60 percent of the bonds were placed with retail
investors, while the balance landed with institutional
investors.

The notes are expected to be rated A+ by S&P and Aa3 by
Moody's.

Key dates of the ANZ offer are:

First call date: April 18, 2013

Second call date: April 18, 2018

Step-up margin after April 2018: +100bps
($1=NZ$1.26)
(Reporting by Cecile Lefort)