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 10 (Notes), which will raise A$1.75 billion (upsized from A$750 million following strong demand).

Westpac is also undertaking a reinvestment offer under which eligible holders of Westpac Capital Notes 6 may apply to transfer some or all of their Westpac Capital Notes 6 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 nine joint lead managers: Westpac Institutional Bank, ANZ Securities Limited, Commonwealth Bank of Australia, Morgans Financial Limited, Morgan Stanley Australia Securities Limited, National Australia Bank Limited, Ord Minnett Limited, Shaw and Partners 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 partners Philippa Stone, Charlotte Henry and Philip Hart, and supported by special counsel Yorick Ng, senior associates David Curley and Henry Simpson, and solicitors David Tilley and Felix Hu.

Herbert Smith Freehills partner Philippa Stone said, “We are delighted to have acted for the joint lead managers on another Westpac capital notes transaction. The transaction has been highly successful, and has been upsized from A$750 million to A$1.75 billion. This role follows our recent roles on a number of other significant bank hybrids, including several launched in compliance with the new Corporations Actdesign and distribution obligations, reflecting continued strong investor demand for Australian bank hybrid securities”.

Allens advised Westpac Banking Corporation.