ANZ Declares AUD 1.2556 Quarterly Distribution on Capital Notes
Australia and New Zealand Banking Group Limited (ANZ) has announced a quarterly distribution of AUD 1.2556 per security on its capital notes, with a 70% franking rate and payment scheduled for December 22, 2025.
- Quarterly distribution of AUD 1.2556 per capital note
- Distribution is 70% franked, reflecting partial tax credits
- Payment date set for December 22, 2025
- Distribution rate calculated at 4.5828% per annum
- Payment subject to ANZ’s discretion and standard conditions
ANZ Announces Quarterly Distribution on Capital Notes
Australia and New Zealand Banking Group Limited (ANZ) has declared its upcoming quarterly distribution on the CAP NOTE 3-BBSW+3.00 PERP NON-CUM RED T-03-28, trading under the ASX code AN3PI. Investors holding these capital notes can expect a payment of AUD 1.2556 per security, scheduled for December 22, 2025. The ex-dividend date is December 9, with the record date following on December 10.
Distribution Details and Tax Implications
The distribution is partially franked at 70%, meaning that a significant portion of the payment carries Australian franking credits, which can be valuable for resident investors seeking to offset tax liabilities. The unfranked portion of the distribution is sourced from ANZ’s conduit foreign income account, ensuring no withholding tax applies to non-resident holders on this component. Australian resident investors are advised to provide their Tax File Number (TFN) or Australian Business Number (ABN) to ANZ’s share registrar to avoid withholding tax on the unfranked amount.
Calculation of the Distribution Rate
The total distribution rate for the period is set at 4.5828% per annum. This rate is derived from the 3-month Bank Bill Swap Rate (BBSW) plus a margin of 3.00%, adjusted for the prevailing corporate tax rate. The distribution rate calculation follows the terms outlined in the ANZ CN6 Prospectus dated June 9, 2021. Notably, the payment is subject to ANZ’s absolute discretion and standard payment conditions, which is typical for hybrid securities of this nature.
No Additional Approvals Required
ANZ confirmed that no external approvals, such as security holder or court approvals, are required for this distribution. This streamlines the payment process and provides investors with clarity on timing and certainty, barring any unforeseen changes in the bank’s discretion or regulatory environment.
Investor Considerations
Investors should monitor any announcements regarding changes to the franking rate before the payment date, as adjustments could affect the final distribution amount. Additionally, ensuring tax information is up to date with the share registrar will help avoid unnecessary withholding. This distribution continues to reflect ANZ’s commitment to providing steady income streams to holders of its capital notes, balancing yield with tax efficiency.
Bottom Line?
ANZ’s upcoming distribution underscores the bank’s steady approach to hybrid security payouts, but investors should watch for any franking rate updates ahead of payment.
Questions in the middle?
- Will ANZ maintain the 70% franking rate for future distributions?
- How might changes in the BBSW rate impact upcoming distribution yields?
- What are the implications if ANZ exercises discretion to withhold payment?
