ASB Subordinated
Notes 2 available for investment

Offer open 3 November 2016 to
25 November 2016

ASB Bank Limited (ASB) is offering up to NZ$250 million of subordinated unsecured convertible notes (with the ability to accept oversubscriptions of up to NZ$150 million) to retail investors in New Zealand and eligible institutional investors. The offer will open on 3 November 2016 and will close at 5 pm on 25 November 2016.

This investment is riskier than a bank deposit. ASB Subordinated Notes 2 are complex financial products that are not suitable for many investors. If you do not fully understand how they work or the risks associated with them, you should not invest in them. You should read the Product Disclosure Statement (PDS) dated 25 October 2016 which has been lodged with the Registrar of Financial Service Providers and you can seek advice from a financial adviser to help you make an investment decision.

ASB Subordinated Notes 2 will have a term of approximately ten years but may be repaid earlier in certain circumstances. ASB Subordinated Notes 2 will be converted into ordinary shares in Commonwealth Bank of Australia ABN 48 123 123 124 (CBA) or written off if a non-viability trigger event occurs. A non-viability trigger event can occur if (among other things) ASB or CBA experience severe financial difficulty. CBA does not guarantee ASB or ASB Subordinated Notes 2.

ASB Subordinated Notes 2 are expected to be quoted on the NZX Debt Market and have been assigned a credit rating of BBB+ by Standard and Poor's.

The initial interest rate and the margin will be announced on or before the opening date.

Full details of ASB Subordinated Notes 2 are contained in the PDS. The PDS and other documents are provided below.

Further information relating to ASB, CBA and ASB Subordinated Notes 2 is available free of charge on the online Disclose register maintained by the Companies Office. The Disclose register can be accessed at www.business.govt.nz/disclose.


For more information or to get started, contact the Joint Lead Managers referred to below, another NZX participant, or your normal financial adviser.

New Zealand investors will only be able to obtain an allocation via the Joint Lead Managers or other NZX participants. There is no public pool.

Commonwealth Bank of Australia

0800 272 633

Forsyth Barr Limited

0800 367 227

Bank of New Zealand

0800 284 017


0800 742 737

Deutsche Craigs Limited

0800 226 263

Investments in ASB Subordinated Notes 2 are an investment in ASB and may be affected by the ongoing performance, financial position and solvency of ASB. ASB Subordinated Notes 2 may also be affected by the ongoing performance, financial position and solvency of CBA. They are not deposit liabilities or protected accounts of CBA for the purposes of the Banking Act 1959 (Cth). 

NZX accepts no responsibility for any statement in this advertisement. NZX is a licensed market operator and the NZX Debt Market is a licensed market under the Financial Markets Conduct Act 2013.