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$25 mil. Rollover Note issue

20 September 2001 |Media centre

Bendigo Bank is seeking to raise $25 million in capital through a Rollover Note issue launched today.

Managing Director Rob Hunt said the issue formed part of the Bank's ongoing capital management strategy and would be used to fund further expansion of Bendigo's business.

"Our Tier 1 capital position was extremely strong following the issue of shares to fund the acquisition of First Australian Building Society," Mr Hunt said.

"But with our business continuing to grow strongly, we require further capital to ensure we meet our capital adequacy requirements.

"Bendigo has previously attracted strong investor interest from the issue of similar capital instruments in our Convertible Notes and Capital Notes.

"This provides another opportunity to make an investment of a capital nature. Investors should be aware this is not a bank deposit and should seek appropriate advice if considering an investment."

The Issue offers both floating and fixed rate alternatives, namely:

Floating: 180 Day Bank Bill Rate plus 1.50% p.a.
Fixed: 7.0%p.a. until 19 October 2006 then Floating at 180 Day Bank Bill Rate plus 1.50% p.a.
The Bank has the option to repay the Rollover Notes from 2006, subject to prior approval from APRA.

Mr Hunt said the notes provided investors with special features.

"After year five, the Notes automatically roll over for another six months every six months unless the Bank redeems them or the investor notifies the Bank not to extend them.

"In this way, investors can continue to enjoy the investment for an extended term at the Bank Bill Rate plus 1.50%."

The issue is being managed by Austock Brokers and a copy of the Information Memorandum is available on its website

Alternatively, investors can ring for a copy of the Information Memorandum on 1800 806 362.

The Information Memorandum provides a question and answer section which addresses the likely queries of most investors.

For further information contact Martin Ryan at Austock Brokers on (03) 8601 2000.

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