BOQ raises $200m of new capital

Bank of Queensland (BOQ) announces that the offer of BOQ Perpetual Equity Preference Shares (BOQ PEPS) that closed on 10 December 2007 is heavily oversubscribed. As a result, BOQ has exercised its option to raise A$50 million in oversubscriptions and will therefore raise A$200 million of new capital. The proceeds of the offer of BOQ PEPS will increase BOQ’s Tier 1 capital and will be used to fund further growth of its business.

Bank of Queensland Managing Director David Liddy said he was very happy with the support the offer had received from investors.

“BOQ’s PEPS offer has been heavily oversubscribed and this shows the strong demand for investors to be a part of the BOQ success story,” Mr Liddy said.


Allocation Policy

Valid Applications in the Shareholder Priority Offer have been allocated 100% of their Applications up to $10,000 and 34.16% of the balance, rounded to the nearest whole BOQ PEPS.

Valid Applications in the General Offer have not been allocated any BOQ PEPS.

Applications that were accompanied by cheques that were subsequently dishonoured have not been allocated any BOQ PEPS.

Valid Applications under the Broker Firm Offer and the Institutional Offer have been accepted in full.

This allocation policy will also be set out in an allocation notice that will be published in Monday, 17 December editions of The Australian Financial Review, The Sydney Morning Herald, The Age, The Courier Mail and The Australian.

Applicants under the Shareholder Priority Offer can enquire about their allocation of BOQ PEPS by telephoning the BOQ PEPS Information Line on 1300 657 383 from 9am (Brisbane time) on Friday, 14 December 2007.

Deferred Settlement Trading of BOQ PEPS

BOQ PEPS are expected to commence trading on the ASX on Monday, 17 December 2007 at 10am (Sydney time) on a deferred settlement basis under the ASX code of BOQPC. 

Trading on the ASX will then be on a deferred settlement basis until BOQ has advised the ASX that Holding  Statements have been dispatched to holders of BOQ PEPS, which is expected to be on or about Thursday, 20 December 2007. Trading on a normal settlement basis is then expected to commence on or about Friday, 21
December 2007.


ABN AMRO Rothschild has acted as Structuring Adviser to the offer of BOQ PEPS. ABN AMRO Rothschild and Macquarie Equity Capital Markets have acted as Joint Lead Managers and Underwriters.

ABN AMRO Morgans and Macquarie Equities Limited have acted as Co-Managers to the offer of BOQ PEPS.

Important notices

Capitalised terms in this announcement have the same meaning as defined in the Prospectus or the Supplementary Prospectus for the BOQ PEPS lodged by Bank of Queensland with ASIC on 9 November 2007 and 20 November 2007 respectively.

Each Applicant is responsible for confirming the number of BOQ PEPS allocated to it prior to selling any BOQ PEPS. Applicants who sell BOQ PEPS before receiving confirmation of their allocation in the form of their Holding Statement do so at their own risk. Bank of Queensland, the Registry and the Joint Lead Managers disclaim all liability, in negligence or otherwise, to any person who sells BOQ PEPS before receiving their Holding Statement, whether on the basis of a confirmation of allocation provided by any of them, the BOQ PEPS Information Line, a broker or  otherwise.

This announcement contains general information only and does not take into account the investment objectives, financial situation or particular needs of individual investors. Investors should obtain their own independent advice from a qualified financial adviser having regard to their own investment objectives, financial situation and needs. Bank of Queensland Limited does not guarantee the payment of dividends on BOQ PEPS or their capital value and/or performance as an investment.