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.