AMP Limited

AMP Capital Notes 2

AMP Limited (AMP) has announced it is seeking to raise $[200] millionthrough the issue of AMP Capital Notes 2 (AMPPB)2.

AMP Capital Notes 2 may be suitable for investors looking for regular income by way of floating rate distributions from a wealth management company with an expanding international investment management business and a growing retail banking business and offers investors the opportunity to further diversify their income portfolio.

AMP Capital Notes 2 are complex and involve different risks to a simple debt or ordinary equity security. Capital Notes 2 may not be suitable for all investors and contain features which may make the Terms difficult to understand. Before applying for AMP Capital Notes 2 all investors should consider whether AMP Capital Notes 2 are a suitable investment for them including by considering the key risks as outlined in Sections 1.4 and 5 of the Prospectus.

Please contact your adviser to discuss the suitability of AMP Capital Notes 2 given your specific investment objectives, current portfolio holdings and if appropriate secure an allocation.

Key features of the Offer

  • Ability to secure a Broker Firm allocation via Morgans in AMP Capital Notes 2
  • AMP Capital Notes 2 have a face value of $100 and are redeemable by the issuer on 16 December 20253
  • If not redeemed before, AMP Capital Notes 2 convert into AMP Ordinary Shares on 16 December 20274 (subject to Shareholder Approval at the next annual general meeting on 8 May 2020)
  • Quarterly gross distributions5 equal to the 3 month Bank Bill Rate plus a margin of [4.50 - 4.70]% i.e. approximately [5.40 - 5.60]%p.a.6
  • Distributions are discretionary and non-cumulative but must be paid ahead of Ordinary Share dividends, and if not paid, dividend and capital restrictions apply to Ordinary Shares
  • AMP Capital Notes 2 are Basel III compliant regulatory capital instruments and contain a non-viability trigger condition which may impact their value in certain circumstances7
  • ASX listed liquidity8

Issuer: AMP Limited (AMP)

Transaction: Additional Tier 1 Regulatory Capital Note issue

Morgans Role: Joint Lead Manager

Offer Size: $[200] million

Offer Open: 4 December 2019

Morgans Closing Date: 17 December 2019

Investors should note that investments in AMP Capital Notes 2 are an investment in AMP and may be affected by the ongoing performance, financial position and solvency of AMP. AMP Capital Notes 2 are subject to investment risks, including loss of income and principal invested. There is a risk you may lose some or all of the money you invest in Capital Notes 2 due to a Non-Viability Event or on a winding-up of AMP if there are insufficient assets to satisfy payment of securities and obligations ranking ahead of Capital Notes 2. In either case, you will not be repaid any of the Face Value and will not receive any of the Distribution payments scheduled and unpaid from that time.

Neither AMP nor any member of the AMP Group in any way guarantees the capital value and/or performance of Capital Notes 2 or any particular rate of return. Capital Notes 2 are not deposit or protected accounts or policies of AMP Bank or any other member of the AMP Group, are not guaranteed or insured by any government or compensation scheme or any government agency or any other party.

  1. AMP may issue more or less than $[200] million of AMP Capital Notes 2.
  2. Morgans will receive fees for its role.
  3. Subject to APRA approval.
  4. Conversion is subject to conversion tests as outlined in the Prospectus.
  5. Distributions are non-cumulative, paid at the discretion of AMP and subject to distribution payment conditions.
  6. Based on 3 month Bank Bill Rate of [0.90]%
  7. Such conditions may in certain circumstances impact the security's value; full detail is contained in the Prospectus and Morgans Offer Summary.
  8. Application will be made to list AMP Capital Notes 2 on ASX.

More information

If you have any questions about the offer, please contact your Morgans adviser, call 134 226 or find your nearest office here.

Download Prospectus

AMP Capital Notes 2 are being offered only in Australia and the Prospectus will only constitute an offer to a person receiving it in Australia. Not for distribution, directly or indirectly, in the United States or to, or for the account or benefit of, US Persons, except in accordance with an available exemption from the registration requirements of the US Securities Act. The distribution of the Prospectus (including an electronic copy) in jurisdictions outside Australia may be restricted by law.

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