Issue
Why do the security descriptions for Westpac Capital Notes series 1 (WBCPD), 2 (WBCPE), 3 (WBCPF) and 4 (WBCPG) all have the security description as "Westpac Banking Corporation - Cap Note 3-BBSW+X.XX% Perp Non-Cum Red T-MM-YY" in Class?
Shouldn't they have the description as Cap Note 1-, Cap Note 2-, Cap Note 3- and Cap Note 4- respectively?
Explanation
The information below is sourced from ASX Security Descriptions which provides a more detailed explanation.
Each ASX quoted debt and hybrid security uses the below Naming Conventions for Debt and Hybrid Securities. The security description provides basic information about the security's features.
Description example – WBCPG
WBCPG has the following 'Long form description':
- Westpac Banking Corporation - Cap Note 3-BBSW+4.90% Perp Non-Cum Red T-12-2
Note 3 means the distribution/dividend from the security is payable on a quarterly basis, it is not related to Capital Note series number.
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CAP NOTE |
A Capital Note, meaning that the issuer (or a third party such as a prudential regulator like APRA) has a right to extinguish the security under certain circumstances. |
|
3-BBSW+4.90% |
The security pays a quarterly floating distribution based on the 3-month BBSW rate + 4.90%. |
|
PERP |
The security has no maturity date (e.g. it is perpetual). |
|
NON-CUM |
The distributions are non-cumulative. |
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RED |
The security is redeemable. |
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T-12-21 |
The security has a trigger date for possible conversion in December 2021. |