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Westpac to raise $500m

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SYDNEY, Jan 30 AAP

January 30 2013, 2:18PM

Westpac is raising $500 million through the issue of hybrid securities to investors to strengthen its capital position.

The new hybrid securities are expected to be listed on the share market after being issued in March, and will convert into ordinary shares in 2021.

Hybrid securities share characteristics of bonds and equities, paying a regular income `til maturity when they convert to ordinary stocks.

Westpac said the proceeds of the offer will be used for "general business purposes".

Chief financial officer Phil Coffey said the issue would further strengthen Westpac's Tier 1 capital position.

Westpac's current Tier 1 capital ratio of 10.3 per cent, which measures the bank's equity capital weighed against its assets, would be boosted by 16 basis points, he said.