Westpac Banking (ASX:WBC. NZE:WBC) issued AU$250 million fixed-rate to floating-rate callable subordinated notes due Aug. 20, 2036, and AU$1.25 billion floating-rate callable subordinated notes due Aug. 20, 2036, on Wednesday, according to a Friday Australian bourse filing.

The notes are expected to be treated as Tier 2 regulatory capital under the Basel III capital adequacy framework, and the issuance is expected to raise its Tier 2 regulatory capital to satisfy Westpac's regulatory requirements.

The fixed-rate to floating-rate notes will carry an interest rate of 5.901% per annum payable semi-annually in arrears until the first optional redemption date on Aug. 20, 2031, after which the interest rate shall be based on the bank bill swap rate. The interest rate for the floating rate notes will also be based on the bank bill swap rate.