Heritage launches $30 million ASX listed debt transaction

Heritage Building Society today announced the launch of an ASX listed subordinated debt transaction, to raise approximately $30 million, with the ability to raise more or less.

The Heritage Notes are a new style of transaction for Australia’s largest building society Heritage, involving the issue of subordinated, unsecured debt securities with the intention that they be quoted on the ASX.

Heritage Treasurer, Mr Paul Williams said that Heritage notes provide a strong investment opportunity for members and investors with the security scheduled to pay interest of 10% pa fixed for five years, following which the interest rate will change to a floating rate until the maturity date in ten years (unless redeemed earlier).

“The additional $30 million in capital that will be raised via the transaction is an integral element of Heritage’s ongoing capital management strategy and will ensure the Society retains its strong financial position, and allow the organisation growth opportunities into the future,” Mr Williams said.

“This transaction signifies a new era for Heritage demonstrating a high level of innovation and sophistication and added flexibility in managing the Society’s capital mix.”

Mr Williams highlighted, “This transaction is not only a first for Heritage but the first ASX listed debt transaction by a mutual Authorised Deposit-taking Institution (ADI).”

Heritage Chief Executive Officer, Mr John Minz said the subordinated debt does not mean that Heritage is de-mutualising nor is the organisation considering an equity listing on the ASX.


”This is a significant milestone for the Society and it is exciting news for members and other investors who have the opportunity to invest in the transaction,” Mr Minz said.

“For Heritage members, this is a unique opportunity to benefit from the favourable market conditions for an investment of this type. This is just another example of Heritage putting People first.”

Mr Minz added, “The proceeds from the proposed $30 million transaction will be used for general business purposes.”

The Heritage Notes offer will open on Wednesday 23 September, 2009 with an expected closing date of Monday 19 October, 2009. The Joint Lead Managers for the transaction are UBS and Westpac, with FIIG Securities acting as Syndicate Broker.


To obtain a copy of the Prospectus call the Heritage Notes information line on 1300 022 174 or log onto www.heritagenotes.com.au. Anyone who wants to acquire Heritage notes must complete the application form that accompanies the Prospectus.

* Based on a $150,000 loan over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.