Bendigo and Adelaide Bank's Offer of Capital Notes 2 and Reinvestment for CPS4

Bendigo and Adelaide Bank Limited (ASX: $BEN) has announced an offer of new Capital Notes 2 (CN2) to raise approximately $250 million, with the ability to raise more or less. The offer includes a reinvestment offer for eligible Converting Preference Shares 4 (ASX: $BENPG) (CPS4) holders to reinvest all or some of their CPS4 in CN2. The proceeds from CN2 will be used to fund the redemption of Participating CPS4 and for BEN's general corporate purposes. The offer has important changes to the eligibility criteria requirements and the application process due to product design and distribution obligations (DDO Laws).

Executive Commentary on Capital Notes 2 Offer and Reinvestment

The offer of new Capital Notes 2 and the reinvestment offer for Converting Preference Shares 4 align with our capital management strategy and will provide us with additional flexibility to support our ongoing growth and the prosperity of our customers and communities.

Summary of Bendigo and Adelaide Bank's Offer and Outlook

Bendigo and Adelaide Bank (ASX: $BEN) has announced the offer of new Capital Notes 2 (CN2) to raise approximately $250 million, with the ability to raise more or less, along with a reinvestment offer for eligible Converting Preference Shares 4 (CPS4) holders. The proceeds from CN2 will be used to fund the redemption of Participating CPS4 and for BEN's general corporate purposes. The offer has important changes to the eligibility criteria requirements and the application process due to product design and distribution obligations (DDO Laws). The CN2 are expected to provide investors with floating rate, quarterly, discretionary, non-cumulative distributions that are expected to be fully franked. The Margin is expected to be between 3.20 per cent to 3.40 per cent, and the Distribution Rate on CN2 would be equivalent to an unfranked Distribution Rate of between 7.50 per cent and 7.70 per cent per annum. BEN has made a Target Market Determination (TMD) for CN2 in accordance with its obligations under the DDO Laws. The offer details are set out in the prospectus lodged with the Australian Securities and Investments Commission (ASIC) and ASX. Investors are advised to read and consider the Prospectus in full and obtain professional advice before deciding whether to acquire CN2 or participate in the Reinvestment Offer.