Macquarie’s Capital Notes Yield 6.34% Annualised with Partial Franking

Macquarie Group’s Latest Distribution Announcement

Macquarie Group Limited has confirmed an ordinary quarterly distribution of AUD 1.5799 per security for its CAP NOTE 3-BBSW+3.70% perpetual capital notes, with the payment scheduled for December 12, 2025. This announcement follows the company’s established pattern of steady income payments to holders of these notes, which are a key component of Macquarie’s capital structure.

Details of the Distribution and Franking

The distribution is partially franked at 35%, meaning that a portion of the payment carries a tax credit reflecting corporate tax already paid by Macquarie. Specifically, AUD 0.553 per security is franked, while the remainder is unfranked. This partial franking is significant for investors seeking tax-efficient income streams, especially within the Australian tax environment.

The total annualised distribution rate stands at 6.3368%, derived from the combination of the 90-day BBSW reference rate and a fixed margin of 3.7%. This rate reflects the cost of capital for Macquarie and provides investors with a competitive yield relative to other fixed income instruments.

Key Dates and Regulatory Context

Investors should note the ex-date of November 26, 2025, and the record date of November 27, 2025, which determine eligibility for the distribution payment. Importantly, no external approvals; such as security holder or court approvals; are required ahead of the payment, indicating a smooth and routine process consistent with prior distributions.

The distribution relates to the quarter ending December 11, 2025, and is paid in Australian dollars. Macquarie has not indicated any changes to its securities plan or tax components beyond the franking credits disclosed.

Implications for Investors and Market Observers

This announcement reinforces Macquarie’s commitment to providing predictable income streams through its capital notes, which are perpetual and non-cumulative in nature. For investors, the partial franking and the attractive yield may enhance the appeal of these notes in a competitive fixed income market. Market participants will be watching for any future adjustments to the margin or franking levels that could signal shifts in Macquarie’s capital strategy or broader economic conditions.