Perpetual Equity Preference Shares (PEPS)
BOQ PEPS are Perpetual Equity Preference Shares which entitle holders to discretionary, preferred, non-cumulative semi-annual floating rate dividends that are expected to be fully franked. The payment of dividends is subject to certain conditions including availability of profits and the Directors’ discretion.
BOQ issued PEPS to provide the Bank with Non-Innovative Residual Tier 1 Capital as part of its ongoing capital management.
On Friday, 14 December 2007, BOQ announced that the offer of Perpetual Equity Preference Shares (BOQ PEPS) that closed on 10 December 2007 was heavily oversubscribed. As a result, BOQ exercised its option to raise A$50 million in oversubscriptions and, therefore, raised A$200 million of new capital.
BOQ may, with the prior written approval of APRA, choose to redeem the BOQ PEPS on the fifth anniversary of the Issue Date, or on each subsequent Dividend Payment Date, or following the occurrence of a Tax Event or Regulatory Event. After a change of control event, the BOQ PEPS will be redeemed or converted, subject to certain conditions.
BOQ PEPS rank subordinate to all creditors (including depositors) and current RePS holders, equal with current S1RPS holders, and in priority to Ordinary Shareholders.
Moody’s has indicated a credit rating of Baa1 for BOQ PEPS. Standard & Poor’s has indicatively rated BOQ PEPS as BBB-.
PEPS are listed on the Australian Securities Exchange under the code BOQPC and are only available to investors through purchase on the exchange.
Full Terms and Conditions of BOQ PEPS are contained in the Prospectus for the issue of BOQ Perpetual Equity Preference Shares (“BOQ PEPS”) (PDF 996kb).
Reset Preference Shares (RePS)
Reset Preference Shares (RePS) that were issued by BOQ are a form of hybrid capital. Full details are contained in the attached Terms and Conditions for Reset Preference Shares (PDF 166kb).
Resolutions were passed at the Special General Meetings on 1 August 2005 to alter the terms of non-cumulative Reset Preference Shares (RePS). Read the Information flyer and general implications for RePS Holders (PDF 181kb).
In accordance with the relevant terms and conditions, it was announced on 27 August 2010 that Bank of Queensland will exchange all issued RePS for fully paid Ordinary Shares in Bank of Queensland on the next dividend payment date. RePS were suspended from official quotation on the Australian Securities Exchange (ASX) on 8 October 2010 and converted to BOQ Ordinary shares on 15 October 2010.
For more information please access the RePS Issuer Conversion Notice (PDF 56kb) and the Further Details of the Conversion Notice (PDF 41kb) released by the ASX.
Series 1 Reset Preference Shares (S1RPS)
Details of the S1RPS offer, including the Information Memorandum and Terms and Conditions, can be found in the Series 1 Reset Preference Shares booklet (PDF 260kb).
In accordance with the relevant terms and condition, BOQ exchanged all issued S1RPS for fully paid Ordinary BOQ Shares on 20 October 2008. For more information please access the S1RPS Exchange Notice (PDF 30kb) released by the Australian Securities Exchange.