BOQ announces $150m capital raising


Bank of Queensland (BOQ) has today lodged a Prospectus with ASIC for an offer of Bank of Queensland Perpetual Equity Preference Shares (BOQ PEPS).


Bank of Queensland proposes to raise A$150 million with the ability to issue additional BOQ PEPS to raise up to a further A$50 million in oversubscriptions (the Offer).


Bank of Queensland is issuing the BOQ PEPS as part of its ongoing capital management strategy. The proceeds raised from the Offer will increase Bank of Queensland’s Tier 1 capital and will be used to fund further growth of its business.


Terms of the BOQ PEPS

BOQ PEPS are preference shares with a face value of A$100. BOQ PEPS offer discretionary, preferred, non-cumulative semi-annual dividends based on a floating rate calculated as a margin over the 180-day Bank Bill Swap Rate. Dividends are expected to be fully franked. The margin has been set at 2.00%.


The full Terms of Issue of the BOQ PEPS are contained in the Prospectus, which can be viewed online or can be obtained in paper form by calling the BOQ PEPS Information Line on 1300 657 383.


Offer structure

The Offer comprises:

  • a Shareholder Priority Offer – made to existing Bank of Queensland ordinary shareholders and holders of Bank of Queensland’s RePS and S1RPS (“Eligible Shareholders”)
  • a General Offer – made to Australian resident retail investors
  • a Broker Firm Offer – made to Australian resident retail clients of the Co-Managers and other brokers participating in the Broker Firm Offer; and
  • an Institutional Offer – made to institutional investors in Australia and other selected jurisdictions.


If there is excess demand, Eligible Shareholders will receive priority in allocation over applicants who have applied under the General Offer. Eligible Shareholders will shortly receive an invitation to participate in the Shareholder Priority Offer and are invited to call the BOQ PEPS Information Line to receive their personalised shareholder priority application form and a Prospectus.



ABN AMRO Rothschild is acting as Structuring Adviser to the Offer. ABN AMRO Rothschild and Macquarie Equity Capital Markets are acting as Joint Lead Managers and Underwriters.


ABN AMRO Morgans and Macquarie Equities Limited are acting as Co-Managers to the Offer.


Further information

The Prospectus contains important information on the Offer. Full details of the Offer are set out in the Prospectus lodged with ASIC today. View an electronic copy of the Prospectus online or to obtain a paper copy of the Prospectus with an attached application form, please call the BOQ PEPS Information Line on 1300 657 383.


Any person wishing to apply for BOQ PEPS should read the Prospectus in its entirety, then complete and lodge an application form or apply online. The application form will be attached to the Prospectus and will be available online after the Offer opens, which is expected to be at 9:00am (Brisbane time) on 19 November 2007. Eligible Shareholders can also complete and lodge their personalised shareholder priority application form or apply online.


Important notices

This announcement, and the information it contains, does not take into account your investment objectives, financial situation or particular needs. You should consider whether investing in BOQ PEPS is appropriate for you in light of your personal circumstances. In deciding whether to subscribe for BOQ PEPS you should read and consider the Prospectus and seek investment advice from your financial adviser. An investment in BOQ PEPS is not a deposit liability of Bank of Queensland Limited (ABN 32 009 656 740) or any of its subsidiaries and is not subject to the depositor protection provisions of Australian banking legislation. It is subject to investment risk, including possible non payment, delays in repayment and loss of income and principal invested. Bank of Queensland Limited does not guarantee the payment of dividends on BOQ PEPS or their capital value and/or performance as an investment.


Indicative Timetable

The indicative timetable and key dates in relation to the Offer are set out below:


Key dates of the Offer

Prospectus lodged with ASIC

9 November 2007

Offer opens

19 November 2007

Offer closes

10 December 2007

BOQ PEPS Issue date

17 December 2007

BOQ PEPS commence trading on ASX on deferred settlement basis

17 December 2007

Holding statements dispatched by

20 December 2007

BOQ PEPS commence trading on ASX on normal settlement basis

21 December 2007


Key dates for the BOQ PEPS

First dividend payment date

15 April 2008

First Bank of Queensland redemption call date

17 December 2012


Dates may change

These dates are indicative only and are subject to change. Bank of Queensland, in consultation with the Joint Lead Managers, reserves the right to extend the closing date, to close the Offer early without notice, to accept late applications, or to withdraw the Offer at any time prior to the issue of BOQ PEPS. Accordingly, investors are encouraged to submit their application forms as soon as possible after the opening date. If the closing date is varied, subsequent dates may also be varied.



Bank of Queensland will apply to ASX within seven days after the date of the Prospectus for the BOQ PEPS to be quoted on ASX.



No applications for BOQ PEPS will be processed (and no BOQ PEPS will be issued) until seven days after the Prospectus is lodged with ASIC. This period is known as the Exposure Period.  ASIC may extend that period for up to a further seven days.