AMP Limited refers to the A$250 million floating rate Subordinated Notes (Notes) which were issued by it on 1 September 2017. The Notes are direct, unsecured, subordinated debt obligations of AMP Limited and will mature on 1 December 2027. The proceeds of the Notes were used by AMP Limited to fund subordinated notes issued to it (Internal Notes) by AMP Bank Limited (AMP Bank) (a wholly owned subsidiary of AMP Limited).
Under the Terms and Conditions of the Notes, AMP Limited has the option to redeem all or some of the Notes on 1 December 2022 (Optional Redemption Date), subject to the prior receipt of written approval from the Australian Prudential Regulation Authority (APRA).
The redemption of the Notes has been approved by APRA and AMP Limited has elected to redeem all Notes on the Optional Redemption Date. The Internal Notes qualify as Tier 2 Capital of AMP Bank and will not be redeemed by AMP Bank. This will not affect the redemption of the Notes.
AMP Limited’s redemption of the Notes does not imply or indicate that AMP Limited or AMP Bank will in the future exercise any right it may have to redeem any other outstanding regulatory capital instruments issued by either AMP Limited or AMP Bank. Any such redemption would also be subject to the receipt of prior written approval from APRA (which may or may not be provided).
The Holders will receive the Face Value of A$10,000 together with all unpaid interest which has accrued on the Notes as at the Optional Redemption Date in cash for each Note held1. AMP Limited intends to make these payments on the Optional Redemption Date.
The Australian taxation consequences in relation to the redemption and final interest payments of the Notes may vary according to individual circumstances. It is recommended that Holders seek their own taxation advice in relation to the application of the Australian taxation legislation to their own circumstances.
Terms used, but not defined within this announcement are defined in the Terms and Conditions of the Notes which are contained within the Information Memorandum dated 24 August 2017.
1 Payments of accrued interest will be paid to holders who hold the Notes on the Record Date (24 November 2022).