Westpac is bolstering its capital reserves with a $750 million corporate note issue

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Westpac is raising $750 million with a notes offer to increase its capital reserves.

The notes will have an issue price of $100 and will pay quarterly at the 90-day bank bill rate plus a margin of between 4% and 4.2%. This would give a return of between 6.15% and 6.35%.

The moves follows regulator APRA wanting banks to hold more capital against their home lending books.

Westpac follows the ANZ which raised $970 million and the NAB $1.4 billion, which was to facilitate the floating of its troubled UK business.

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