Highlights

  • ANZ Capital Notes (ASX:AN3PI) are set to pay an interim distribution of AUD 1.408 per security.
  • The security carries an annual Yield of 5.15% based on the supplied Dividend information.
  • AN3PI will trade ex-distribution on 8 September 2026, with the Record Date falling on 9 September 2026.
  • The distribution will be paid on 21 September 2026 and will carry 75% franking.

ANZ Capital Notes (ASX:AN3PI) are approaching their next interim distribution, keeping the listed hybrid in focus for investors assessing income-generating securities. AN3PI is an Additional Tier 1 capital note issued by Australia and New Zealand Banking Group. It is not an ordinary share and is structured as a perpetual, subordinated capital instrument.

The upcoming distribution will amount to AUD 1.408 per security and will carry 75% franking. The security has an annual yield of 5.15%. AN3PI will trade ex-distribution on 8 September 2026, followed by the record date on 9 September, while payment will occur on 21 September 2026.

As with other bank hybrids, AN3PI distributions are discretionary and floating-rate rather than fixed contractual payments. The security's income profile is influenced by prevailing short-term interest rates, while investors also need to consider the additional risks associated with regulatory capital instruments.

Distribution in focus

The upcoming interim distribution of AUD 1.408 per security represents one quarterly payment under the terms of AN3PI. The 75% franking attached to the distribution may provide franking benefits for eligible investors, although the after-tax outcome differs from fully franked securities.

The annual yield stands at 5.15%, providing a reference point for investors assessing the income characteristics of ANZ Capital Notes (ASX:AN3PI). However, hybrid distributions differ from conventional fixed-income payments because they remain subject to the security's terms and applicable payment conditions.

AN3PI will trade ex-distribution on 8 September 2026. Investors recorded on 9 September 2026 will be eligible for the upcoming distribution, which will be paid on 21 September 2026.

The distribution amount is influenced by the floating-rate structure of the notes. AN3PI distributions are calculated using the 90-day bank bill swap rate (BBSW) plus a fixed margin, meaning future payments can change as benchmark interest rates move.

What is driving the security

AN3PI forms part of ANZ's Additional Tier 1 capital structure. These instruments are designed to provide loss-absorbing capital during periods of financial stress, which is why they rank below depositors and senior creditors and include conversion and write-down features.

The floating-rate structure means BBSW remains a key Factor influencing the level of distributions. Higher short-term rates can support higher payments, while declining rates may reduce future income from the security.

ANZ's profitability, capital position and ability to satisfy payment conditions remain important considerations for AN3PI holders. Although the notes provide quarterly distribution opportunities, payments remain discretionary and depend on the conditions attached to the capital notes.

The partial franking structure also influences the security's income profile. Compared with fully franked alternatives, a 75% franked distribution may result in a different after-tax outcome depending on an investor's individual circumstances.

Why income investors may be watching

AN3PI provides quarterly income exposure through a listed hybrid issued by ANZ. The upcoming AUD 1.408 distribution and annual yield of 5.15% may attract investors seeking regular income from floating-rate securities.

The 75% franking attached to the distribution provides some tax benefits for eligible investors, although the outcome may differ from fully franked bank hybrids.

The floating-rate structure creates a different return profile compared with fixed-rate securities. While income may benefit when benchmark rates rise, future distributions can decline if interest rates move lower.

Investors evaluating ANZ Capital Notes (ASX:AN3PI) also need to consider the hybrid characteristics of the security, including discretionary payments, subordination, conversion mechanisms and the issuer's financial position.

Risks

AN3PI distributions are discretionary and non-cumulative. If a distribution is not paid because relevant conditions are not satisfied, the missed payment does not automatically accumulate for future payment.

The security is subordinated within ANZ's capital structure, ranking behind depositors and senior creditors. This creates greater risk compared with deposits or senior Debt securities.

AN3PI includes optional exchange and mandatory conversion features, while ANZ is not required to redeem the notes at any specific time. This creates extension and conversion risk for investors.

Under certain capital-trigger or non-viability events, the notes may convert into ANZ ordinary shares or potentially be written down, creating the possibility of capital loss. The floating-rate structure also means income remains sensitive to BBSW movements, while market prices may fluctuate due to interest rates, Credit conditions and investor sentiment.

The partial franking structure is another consideration, as the after-tax outcome may differ from fully franked alternatives.

Investor takeaway

ANZ Capital Notes (ASX:AN3PI) will provide holders with an interim distribution of AUD 1.408 per security, carrying 75% franking. The annual yield stands at 5.15%, while the upcoming ex-distribution, record and payment dates will fall on 8 September, 9 September and 21 September 2026, respectively.

The distribution may remain relevant for income-focused investors seeking floating-rate hybrid exposure, but AN3PI continues to carry the characteristics of a perpetual, subordinated capital note rather than a conventional deposit or senior bond. Future income will depend on benchmark interest rates, ANZ's financial position and the specific terms governing the capital notes.