Macquarie’s CAP Note Yields 6.73% Annualised with December Payout
Macquarie Group Limited has announced a quarterly distribution of AUD 1.6773 per security for its capital note, payable on December 10, 2025, reflecting a stable income stream for investors.
- Quarterly distribution of AUD 1.6773 per capital note security
- Distribution partially franked at 35%
- Total annualised distribution rate of 6.7277%
- Payment date set for December 10, 2025
- No approvals required prior to distribution payment
Macquarie Group’s Latest Distribution Announcement
Macquarie Group Limited has confirmed its ordinary quarterly distribution for holders of its capital note security MQGPD, set at AUD 1.6773 per note. This payment is scheduled for December 10, 2025, with the record date on December 2 and the ex-dividend date on December 1. The announcement underscores Macquarie’s commitment to providing consistent income streams to investors amid evolving market conditions.
Details of the Distribution and Franking
The distribution relates to a 91-day period ending December 9, 2025. Notably, the dividend is partially franked at 35%, meaning investors receive a tax credit on a portion of the payment. The franked amount per security is AUD 0.5871, while the unfranked portion stands at AUD 1.0902. This partial franking reflects Macquarie’s tax position and offers some relief to Australian investors on their tax liabilities.
Calculation of the Distribution Rate
The total annualised distribution rate is calculated at 6.7277%, combining a base rate derived from the 90-day BBSW mid-rate of 3.5869% with a fixed margin of 4.15%. Adjustments are made for franking credits, resulting in the effective distribution rate. This rate aligns with expectations for capital notes of this nature, balancing yield with credit risk considerations.
No Additional Approvals Required
Importantly, Macquarie has confirmed that no external approvals, such as security holder, court, or regulatory consents, are required before the distribution payment. This suggests a smooth process for investors expecting their payments and reflects the company’s stable financial position.
Investor Implications and Market Context
For income-focused investors, this announcement provides reassurance of Macquarie’s ongoing capacity to meet distribution obligations on its capital notes. The partial franking adds an attractive tax element for Australian investors. Market participants will watch how these distributions compare with peers and how Macquarie manages its capital structure amid broader economic conditions.
Bottom Line?
Macquarie’s steady quarterly distribution reinforces its role as a reliable income provider, setting the stage for investor confidence into 2026.
Questions in the middle?
- Will Macquarie maintain or adjust distribution rates in response to changing interest rates?
- How might shifts in tax policy impact the franking credits on future distributions?
- What is the outlook for Macquarie’s capital note issuance and investor demand going forward?
