Bank of Queensland Limited announced today that it was seeking to raise up to $90m in new capital in the form of both an ordinary share placement and a Series 1 Reset Preference Share (S1RPS) placement.
The capital is being raised to maintain the Bank's total capital and Tier 1 targets. The need for additional capital is a result of the significant growth in the Bank's asset portfolios.
The placement of up to $50m of ordinary shares will be conducted through a bookbuild throughout today, and is underwritten to $30 million. The shares issued under the placement will rank equally with all other shares for any interim dividend declared for the half year ending February 29, 2004.
The placement of up to $40m of S1RPS, offered under the existing S1RPS program, will also be conducted through a bookbuild over the course of today.
The S1RPS will be issued on the same terms as, and will rank equally with, the previous issue of S1RPS conducted in October 2003. The S1RPS issued under this placement will be unlisted for at least 12 months from the date of issue, notwithstanding that the existing issue of S1RPS is expected to list before this time.
The placements are part of the Bank's continuing active management of its capital. The Bank's capital management program will continue to include its DRP and SPP programs and securitisation.
ABN AMRO Rothschild is acting as underwriter and arranger of the ordinary share placement. Macquarie Equity Capital Markets is acting as arranger of the reset S1RPS.
Guidance on half year results
Managing Director David Liddy said expansion of the BOQ branch network and the increased focus on business banking were continuing to drive lending volumes.
“We have continued to experience strong asset growth despite the interest rate rises. We expect net profit after tax for the half-year ending February 29 to be in the range of broker analysts’ forecasts of $26m to $28.5m.
“We have undertaken this placement prior to the release of our results because of our strong growth, and we expect to undertake further capital raisings involving retail investors later in the year.
“We are very happy with the support we have had from retail investors, and institutional investors, over the last couple of years,” Mr Liddy said.
The Bank has requested a trading halt in respect of its ordinary shares (ASX Code: BOQ) and reset preference shares (ASX Code: BOQPA) quoted on ASX while the institutional bookbuilds are in progress. The Bank expects to be able to announce the outcome of the bookbuild and the placements in time for trading to recommence from opening of the market on Wednesday, 25 February 2004.
THIS MEDIA RELEASE DOES NOT CONSTITUTE AN OFFER OF SECURITIES IN ANY JURISDICTION. THIS MEDIA RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY, SECURITIES IN THE UNITED STATES OR TO ANY U.S. PERSON (AS DEFINED IN REGULATIONS UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT")). SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES UNLESS THE SECURITIES HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.