Big-four Australian bank Tier 2 bonds: which bonds, and the minimum investment
Candour Capital currently offers 63 AUD Tier 2 subordinated bonds from the big-four Australian banks (ANZ 18, CBA 16, NAB 13, Westpac 16). The minimum investment is AUD 100,000 to AUD 200,000 for bonds issued in Australia (ISIN starting AU) and AUD 500,000 for bonds issued offshore (ISIN starting XS). For wholesale and professional investors only.
| Bank | Bonds | Minimum investment | Maturing |
|---|---|---|---|
| ANZ | 18 | AUD 100,000 | 2032–2046 |
| CBA | 16 | AUD 200,000 to AUD 500,000 | 2031–2046 |
| NAB | 13 | AUD 100,000 to AUD 500,000 | 2031–2043 |
| Westpac | 16 | AUD 100,000 | 2031–2045 |
Every bond
| Bond | Type | Ranking | Coupon | Maturity | First call | Minimum |
|---|---|---|---|---|---|---|
| ANZ AU3CB0291466 | Fixed, then floating | Tier 2 subordinated | 5.906% | 2032-08-12 | 2027-08-12 | AUD 100,000 |
| ANZ AU3FN0070330 | Floating | Tier 2 subordinated | BBSW + 2.70% | 2032-08-12 | 2027-08-12 | AUD 100,000 |
| ANZ AU3FN0077939 | Floating | Tier 2 subordinated | BBSW + 2.35% | 2033-05-16 | 2028-05-16 | AUD 100,000 |
| ANZ AU3CB0299352 | Fixed, then floating | Tier 2 subordinated | 5.845% | 2033-05-16 | 2028-05-16 | AUD 100,000 |
| ANZ AU3FN0084026 | Floating | Tier 2 subordinated | BBSW + 1.95% | 2034-01-16 | 2029-01-16 | AUD 100,000 |
| ANZ AU3CB0305928 | Fixed, then floating | Tier 2 subordinated | 5.888% | 2034-01-16 | 2029-01-16 | AUD 100,000 |
| ANZ AU3CB0292472 | Fixed, then floating | Tier 2 subordinated | 6.405% | 2034-09-20 | 2029-09-20 | AUD 100,000 |
| ANZ AU3FN0094793 | Floating | Tier 2 subordinated | BBSW + 1.52% | 2035-01-15 | 2030-01-15 | AUD 100,000 |
| ANZ AU3CB0317162 | Fixed, then floating | Tier 2 subordinated | 5.545% | 2035-01-15 | 2030-01-15 | AUD 100,000 |
| ANZ AU3CB0331619 | Fixed, then floating | Tier 2 subordinated | 5.673% | 2037-02-23 | 2032-02-23 | AUD 100,000 |
| ANZ AU3FN0107504 | Floating | Tier 2 subordinated | BBSW + 1.25% | 2037-02-23 | 2032-02-23 | AUD 100,000 |
| ANZ AU3CB0296671 | Fixed, then floating | Tier 2 subordinated | 6.736% | 2038-02-10 | 2033-02-10 | AUD 100,000 |
| ANZ AU3CB0311561 | Fixed, then floating | Tier 2 subordinated | 6.124% | 2039-07-25 | 2034-07-25 | AUD 100,000 |
| ANZ AU3CB0324762 | Fixed, then floating | Tier 2 subordinated | 5.691% | 2040-08-14 | 2035-08-14 | AUD 100,000 |
| ANZ AU3CB0338499 | Fixed, then floating | Tier 2 subordinated | 6.446% | 2041-08-21 | 2036-08-21 | AUD 100,000 |
| ANZ AU3FN0113452 | Floating | Tier 2 subordinated | BBSW + 1.57% | 2041-08-21 | 2036-08-21 | AUD 100,000 |
| ANZ AU3CB0324754 | Fixed | Tier 2 subordinated | 6.171% | 2045-08-14 | — | AUD 100,000 |
| ANZ AU3CB0338481 | Fixed | Tier 2 subordinated | 6.749% | 2046-08-21 | — | AUD 100,000 |
| CBA AU3FN0062600 | Floating | Tier 2 subordinated | BBSW + 1.32% | 2031-08-20 | 2026-11-20 | AUD 200,000 |
| CBA AU3FN0067989 | Floating | Tier 2 subordinated | BBSW + 1.90% | 2032-04-14 | 2027-04-14 | AUD 200,000 |
| CBA AU3CB0293769 | Fixed, then floating | Tier 2 subordinated | 6.86% | 2032-11-09 | 2027-11-09 | AUD 200,000 |
| CBA AU3FN0073029 | Floating | Tier 2 subordinated | BBSW + 2.70% | 2032-11-09 | 2027-11-09 | AUD 200,000 |
| CBA AU3FN0082251 | Floating | Tier 2 subordinated | BBSW + 2.05% | 2033-10-25 | 2028-10-25 | AUD 200,000 |
| CBA AU3CB0303667 | Fixed, then floating | Tier 2 subordinated | 6.446% | 2033-10-25 | 2028-10-25 | AUD 200,000 |
| CBA AU3CB0322600 | Fixed, then floating | Tier 2 subordinated | 5.252% | 2035-09-12 | 2030-09-12 | AUD 200,000 |
| CBA AU3FN0099339 | Floating | Tier 2 subordinated | BBSW + 1.70% | 2035-09-12 | 2030-09-12 | AUD 200,000 |
| CBA AU3CB0332039 | Fixed, then floating | Tier 2 subordinated | 5.632% | 2036-03-05 | 2031-03-05 | AUD 200,000 |
| CBA AU3FN0108239 | Floating | Tier 2 subordinated | BBSW + 1.28% | 2036-03-05 | 2031-03-05 | AUD 200,000 |
| CBA AU3CB0292266 | Fixed, then floating | Tier 2 subordinated | 6.51% | 2037-09-13 | 2032-09-13 | AUD 200,000 |
| CBA AU3CB0297653 | Fixed, then floating | Tier 2 subordinated | 6.704% | 2038-03-15 | 2033-03-15 | AUD 200,000 |
| CBA XS2693786035 | Fixed | Tier 2 subordinated | 6.835% | 2038-09-27 | — | AUD 500,000 |
| CBA AU3CB0315638 | Fixed, then floating | Tier 2 subordinated | 6.152% | 2039-11-27 | 2034-11-27 | AUD 200,000 |
| CBA AU3FN0083622 | Floating | Tier 2 subordinated | BBSW + 2.50% | 2043-12-15 | 2038-12-15 | AUD 200,000 |
| CBA AU3CB0332021 | Fixed | Tier 2 subordinated | 6.4% | 2046-03-05 | — | AUD 200,000 |
| NAB AU3FN0051587 | Floating | Tier 2 subordinated | BBSW + 2.02% | 2031-11-18 | 2027-02-18 | AUD 200,000 |
| NAB AU3FN0070199 | Floating | Tier 2 subordinated | BBSW + 2.80% | 2032-08-03 | 2027-08-03 | AUD 200,000 |
| NAB AU3CB0291284 | Fixed, then floating | Tier 2 subordinated | 6.322% | 2032-08-03 | 2027-08-03 | AUD 200,000 |
| NAB AU3CB0297554 | Fixed, then floating | Tier 2 subordinated | 6.163% | 2033-03-09 | 2028-03-09 | AUD 200,000 |
| NAB AU3FN0075966 | Floating | Tier 2 subordinated | BBSW + 2.17% | 2033-03-09 | 2028-03-09 | AUD 200,000 |
| NAB AU3CB0306462 | Fixed, then floating | Tier 2 subordinated | 5.74% | 2034-02-09 | 2029-02-09 | AUD 200,000 |
| NAB AU3FN0084828 | Floating | Tier 2 subordinated | BBSW + 1.95% | 2034-02-09 | 2029-02-09 | AUD 200,000 |
| NAB AU3FN0104659 | Floating | Tier 2 subordinated | BBSW + 1.30% | 2035-11-14 | 2030-11-14 | AUD 200,000 |
| NAB XS2503901659 | Fixed | Tier 2 subordinated | 6.15% | 2037-07-20 | — | AUD 500,000 |
| NAB AU3CB0310175 | Fixed, then floating | Tier 2 subordinated | 6.342% | 2039-06-06 | 2034-06-06 | AUD 200,000 |
| NAB AU3CB0324226 | Fixed, then floating | Tier 2 subordinated | 5.774% | 2040-07-30 | 2035-07-30 | AUD 200,000 |
| NAB AU3CB0334621 | Fixed, then floating | Tier 2 subordinated | 6.558% | 2041-05-12 | 2036-05-12 | AUD 200,000 |
| NAB AU3FN0083556 | Floating | Tier 2 subordinated | BBSW + 2.50% | 2043-12-06 | 2038-12-06 | AUD 100,000 |
| Westpac AU3FN0058129 | Floating | Tier 2 subordinated | BBSW + 1.55% | 2031-01-29 | 2027-01-29 | AUD 100,000 |
| Westpac AU3CB0300366 | Fixed, then floating | Tier 2 subordinated | 6.491% | 2033-06-23 | 2028-06-23 | AUD 100,000 |
| Westpac AU3FN0079091 | Floating | Tier 2 subordinated | BBSW + 2.30% | 2033-06-23 | 2028-06-23 | AUD 100,000 |
| Westpac AU3FN0086328 | Floating | Tier 2 subordinated | BBSW + 1.88% | 2034-04-03 | 2029-04-03 | AUD 100,000 |
| Westpac AU3CB0308278 | Fixed, then floating | Tier 2 subordinated | 5.754% | 2034-04-03 | 2029-04-03 | AUD 100,000 |
| Westpac AU3CB0311140 | Fixed, then floating | Tier 2 subordinated | 5.972% | 2034-07-10 | 2029-07-10 | AUD 100,000 |
| Westpac AU3FN0089413 | Floating | Tier 2 subordinated | BBSW + 1.67% | 2034-07-10 | 2029-07-10 | AUD 100,000 |
| Westpac AU3CB0318194 | Fixed, then floating | Tier 2 subordinated | 5.351% | 2035-02-12 | 2030-02-12 | AUD 100,000 |
| Westpac AU3FN0095626 | Floating | Tier 2 subordinated | BBSW + 1.52% | 2035-02-12 | 2030-02-12 | AUD 100,000 |
| Westpac AU3FN0113148 | Floating | Tier 2 subordinated | BBSW + 1.27% | 2036-08-20 | — | AUD 100,000 |
| Westpac AU3CB0338341 | Fixed, then floating | Tier 2 subordinated | 5.901% | 2036-08-20 | 2031-08-20 | AUD 100,000 |
| Westpac AU3CB0300358 | Fixed, then floating | Tier 2 subordinated | 6.934% | 2038-06-23 | 2033-06-23 | AUD 100,000 |
| Westpac AU3CB0304376 | Fixed, then floating | Tier 2 subordinated | 7.199% | 2038-11-15 | 2033-11-15 | AUD 100,000 |
| Westpac AU3CB0322337 | Fixed, then floating | Tier 2 subordinated | 5.815% | 2040-06-04 | 2035-06-04 | AUD 100,000 |
| Westpac AU3CB0331130 | Fixed, then floating | Tier 2 subordinated | 6.085% | 2041-02-12 | 2036-02-12 | AUD 100,000 |
| Westpac AU3CB0328193 | Fixed | Tier 2 subordinated | 6.135% | 2045-11-13 | — | AUD 100,000 |
About Tier 2 subordinated bonds
Tier 2 bonds are subordinated bonds that count towards a bank's regulatory capital. In a wind-up they rank after deposits and senior bonds, and ahead of Additional Tier 1 and ordinary shares.
Under APRA's rules they carry a non-viability clause: if APRA decides the bank is non-viable, the bonds can be converted into ordinary shares or written off.
The big four's Tier 2 bonds mostly run 10 to 15 years and the bank can usually call them after 5 years, with APRA's approval; a call is not guaranteed. Many are fixed until the call date, then float at BBSW plus a margin.
Questions
- Which Tier 2 subordinated bonds do the big-four banks have, and what is the minimum?
- Candour Capital currently offers 63 AUD Tier 2 subordinated bonds from the big-four Australian banks (ANZ 18, CBA 16, NAB 13, Westpac 16). The minimum investment is AUD 100,000 to AUD 200,000 for bonds issued in Australia (ISIN starting AU) and AUD 500,000 for bonds issued offshore (ISIN starting XS). For wholesale and professional investors only.
- How do Tier 2 bonds differ from senior bonds?
- Tier 2 bonds are subordinated: they rank after senior bonds and can be converted or written off if the bank is non-viable, so they usually pay more than the same bank's senior bonds.
- Will the bond be called on its first call date?
- Not necessarily. The bank decides, with APRA's approval. If it is not called, the bond runs to maturity, and a fixed-to-floating bond starts paying a floating rate.
- Who can invest?
- Through Candour Capital, wholesale and professional investors only, for example with an accountant's s708 certificate.
- Where are the prices and yields?
- Live reference prices and yields are in the Candour app for signed-in users and change with the market.
Related
- Big-four Australian bank senior bonds
- Big-four Australian bank floating rate notes
- Australian rates and credit spreads
- All bond terms
Minimums are those for investing through Candour Capital. Prices, yields and ratings are in the Candour app for signed-in users.
Sign in for live prices