Judo Capital Holdings Limited announces a fully franked quarterly distribution of AUD 1.79129 per Capital Note, reflecting a 7.1% annualised yield based on current market rates.
- Quarterly distribution of AUD 1.79129 per Capital Note
- Distribution fully franked at 100%, reflecting corporate tax credits
- Distribution rate set at BBSW + 6.5% margin, annualised at 7.1067%
- Payment subject to Judo's discretion and standard conditions
- Key dates, Ex-date 5 Feb 2026, Record date 6 Feb 2026, Payment date 16 Feb 2026
Judo Capital Notes Distribution Announcement
Judo Capital Holdings Limited has declared its next quarterly distribution for holders of its Capital Notes (ASX code, JDOPA). The announced payment is AUD 1.79129 per note, fully franked, representing a significant income stream for investors. This distribution relates to the quarter ending 15 February 2026, with the ex-dividend date set for 5 February 2026 and payment scheduled for 16 February 2026.
Understanding the Distribution Rate
The distribution rate is calculated based on the three-month Bank Bill Swap Rate (BBSW) plus a margin of 6.5%, adjusted for corporate tax to yield an annualised rate of approximately 7.11%. This formula reflects the prevailing market conditions and the premium investors demand for holding these perpetual, non-cumulative capital notes. The margin was determined through a bookbuild process at issuance, underscoring investor appetite for Judo’s capital instruments.
Franking and Payment Conditions
Importantly, the distribution is fully franked at 100%, meaning investors receive a tax credit equivalent to the corporate tax paid by Judo. This enhances the after-tax return for Australian resident investors. However, the payment remains subject to Judo’s absolute discretion and standard conditions outlined in the Capital Notes Prospectus dated 31 October 2023. Should any payment conditions not be met, the distribution may be adjusted or deferred, a risk inherent in these types of securities.
Investor Implications and Market Context
For investors, this announcement confirms a steady income stream from Judo’s capital notes, which are positioned as a hybrid instrument blending features of debt and equity. The fully franked nature of the distribution is particularly attractive in the current environment where tax efficiency is a key consideration. Market watchers will note the distribution rate’s sensitivity to the BBSW, which can fluctuate with monetary policy and economic conditions, potentially impacting future payments.
Looking Ahead
As the payment date approaches, investors will be keen to monitor any updates from Judo regarding the franking rate or payment conditions. The company’s discretion over distributions means that while the announced amount is a strong signal of financial health, it is not an absolute guarantee. Analysts will also be watching broader interest rate trends to gauge how future distributions might evolve.
Bottom Line?
Judo’s fully franked distribution underscores its commitment to rewarding investors, but discretion and market rates will shape future payouts.
Questions in the middle?
- Will Judo maintain the 100% franking rate for upcoming distributions?
- How might fluctuations in the BBSW rate affect future distribution amounts?
- What conditions could lead Judo to defer or adjust the distribution payment?