What can you do with an extra $1 billion? Here’s what ANZ is planning.
The post ANZ (ASX:ANZ) shares in focus on $1 billion raising announcement appeared first on The Motley Fool Australia. –
Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares edged lower on opening. At the time of writing, the ANZ share price is down 0.77% to $28.49. Comparatively, the S&P/ASX 200 Index (ASX: XJO) is down 0.29% at the time of writing.
Below we look at the details of the bank’s $1 billion capital raising plans.
How will the bank raise $1 billion?
ANZ shares are edging lower after the big 4 bank announced its intention to raise $1 billion in new tier 1 capital.
The company will raise the funds via its new ANZ Capital Notes 6 (CN6), saying it has the ability to raise more or less than $1 billion.
Under a reinvestment offer, investors holding existing ANZ Capital Notes 1 (CN1) can apply to sell some or all of those holdings. Furthermore, this will then be reinvested into the new CN6 notes. The CN1 notes were issued in August 2013.
Current holders of ANZ shares who wish to participate in the new CN6 offer or the reinvestment offer are looking at a closing date of 30 June.
The company points out that, “ANZ Capital Notes 6 are complex, involve increased risks compared to other less risky and less complex bank investments such as deposits and may not be suitable for all investors.”
The bank said it expects the offer to open on 9 June. It will use the newly raised funds both for general corporate purposes and refinance CN1.
ANZ shares snapshot
ANZ shares first listed in Australia way back in 1969. These days the bank counts amongst the largest listed companies on the ASX 200. The company also has a market cap of $81.7 billion.
ANZ shares are also well known for providing a reliable dividend stream. At the current price of $28.49 per share, the bank pays an annual dividend yield of 3.68%, fully franked.
Atop dividends, shareholders have also enjoyed some outperforming capital gains over the past year. This is due to ANZ shares being up 59% over the past 12 months. By comparison, the ASX 200 has gained 23% over that same time.
Year-to-date ANZ shares are up 25%.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of May 24th 2021
Mosaic Brands (ASX:MOZ) share price rockets 21% on business update
Is the ANZ (ASX:ANZ) share price a buy for June 2021?
2 blue chip ASX dividend shares analysts are tipping as buys