ASB announces $150 mln preference share issue

The offer, which opens on November 11, will see the bank -- through subsidiary ASB Capital Ltd -- issue up to 150 million Perpetual Preference Shares (PPS) at $1 each, with a right to accept oversubscriptions of 50 million.

The freely tradeable shares will carry a quarterly dividend, to be reset on November 15 each year.

Until November 15, 2003, the dividend rate will be the greater of: 7.40 percent per annum, payable quarterly, or; the one year swap rate plus a margin of 1.30 percent, adjusted to a quarterly equivalent rate.

Dividends will consist of a combination of cash payments and imputation credits.

Commonwealth Bank of Australia-owned ASB reported a 23 percent increase in operating profit to $225 million for the full year ending June 30, buoyed by across the board growth and a sharp focus on cost management and margins.

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