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Herbert Smith Freehills has advised the joint lead managers of Westpac Banking Corporation’s (Westpac) successful offer of new Additional Tier 1 capital securities known as Westpac Capital Notes 5 (Notes), which has raised A$1.45 billion (upsized from A$750 million following strong demand).

Westpac is also undertaking a reinvestment offer under which eligible holders of Westpac CPS may apply to sell some or all of their Westpac CPS and reinvest the proceeds in the Notes (Reinvestment Offer).

The Notes are fully paid, non-cumulative, mandatorily convertible, subordinated perpetual securities, offered at an issue price of A$100 per Note and are expected to be quoted on the ASX.

Herbert Smith Freehills acted for the joint lead managers, comprised of Westpac Institutional Bank, ANZ Securities Limited, Commonwealth Bank of Australia, J.P. Morgan Australia Limited, Morgans Financial Limited, National Australia Bank Limited and UBS AG, Australia Branch. Herbert Smith Freehills also acted for UBS AG, Australia Branch in its capacity as the nominated party under the Reinvestment Offer.

The Herbert Smith Freehills team was led by global co-head of equity capital markets, Philippa Stone and supported by senior associate Charlotte Cameron and solicitor Michael Burrell.

“We are delighted to have acted for the joint lead managers on another Westpac capital notes transaction. Despite difficult market conditions, the transaction has been highly successful, and has been upsized from $750 million to $1.45 billion. Our role follows our recent roles on a number of significant bank hybrids and continues to highlight investor demand for Australian bank hybrid securities” said Stone.

Allens advised Westpac.