Investment Opps

As part of RIO’s commitment to increase cash returns to shareholders, they have included a US$2billion share buy-back programme. A$500m of shares in an off-market buy-back, and US$1.6b of RIO Tinto PLC as an on-market buy-back.

NAB announced the successful completion of the Bookbuild and will issue $1.25b of Capital Notes, and has set the margin at 3.5%. The offer opens 25th February 2015 and is expected to close 16th March 2015. NAB Capital Notes are fully paid mandatorily convertible subordinated perpetual notes issued directly by NAB. They will mandatorily convert into NAB Ordinary Shares on 23rd March 2022 provided certain conditions are met. Joint lead managers are NAB, Evans and Partners, Deutsche Bank AG, JP Morgan Australia Ltd. For more information please visit www.nab.cm.au/ncnoffe

Tabcorp has announced a fully underwritten pro rata accelerated renounceable entitlement offer of new Tabcorp share to raise $236m. The capital raising will fund a special dividend, and is intended to maintain the current balance sheet and capital position of Tabcorp. Eligible shareholders can subscribe for 1 New Share for every existing 12 Tabcorp ordinary shares. The record date is 7pm (Sydney time) on the 10th February 2015, and the offer price is $3.70 per New Share.

ANZ has announced it will allocate $850m of ANZ Capital Notes 3 under the bookbuild process and has set the margin over the 180 day BBSW at 3.6% p.a. The offer is open from February 5, use of proceeds are for general corporate purposes, and the Notes form part of ANZ’s ongoing capital management strategy. The Notes are Basel III – compliant Additional Tier 1 Capital under APRA’s current capital adequacy standards. Distributions are non-cumulative, based on a floating rate, and are subject to Payment Condition not existing, and ANZ’s discretion.

Discovery Asset Management Pty Ltd (Discovery) is a boutique funds management business specialising in Australian Small Companies equities investing.