Highlights

  • Bendigo Bank Capital Notes (ASX:BENPI) will pay an interim distribution of AUD 1.338 per note.
  • The distribution carries an annual Yield of 4.76% and is 100% franked.
  • The notes are scheduled to trade ex-distribution on 1 September 2026, with payment due on 14 September 2026.
  • Interest rates, Bendigo Bank's capital position and Credit conditions remain important factors for BENPI holders.

Bendigo and Adelaide Bank Capital Notes (ASX:BENPI) are scheduled for their next interim distribution, with a fully franked payment of AUD 1.338 per note. The notes are due to trade ex-distribution on 1 September 2026, with the Record Date set for 2 September 2026 and payment scheduled for 14 September 2026. The distribution carries an annual yield of 4.76% and is 100% franked. BENPI is not an ordinary Bendigo Bank share or a bank deposit; it is a listed capital note with a different risk and return profile.

Distribution in focus

Bendigo Bank Capital Notes' (ASX:BENPI) interim distribution amounts to AUD 1.338 per note and is fully franked. The annual yield stands at 4.76%, providing an income component for investors willing to accept the additional complexity and risk associated with hybrid capital securities.

The ex-distribution date is 1 September 2026, followed by the record date on 2 September 2026. Eligible holders are scheduled to receive the payment on 14 September 2026. The 100% franking level may enhance the effective value of the distribution for eligible Australian investors able to utilise franking credits.

What is driving the security

BENPI forms part of Bendigo and Adelaide Bank's Additional Tier 1 regulatory capital. Its distributions depend on the bank remaining sufficiently profitable and capitalised, as well as the applicable terms governing payments. Bendigo is one of Australia's larger regional banks, with a retail deposit-funded model, a residential Mortgage book and a long-standing community banking franchise.

The size of distributions on floating-rate capital notes is influenced by prevailing short-term interest rates and the security's fixed margin. Changes in benchmark rates can therefore affect future cash payments, while the broader credit quality and capital position of the issuer influence market perceptions of the security.

Why income investors may be watching

Bendigo Bank Capital Notes (ASX:BENPI) combine periodic cash distributions with 100% franking, which may appeal to eligible Australian investors seeking income beyond ordinary shares.

However, capital notes differ materially from deposits and conventional fixed-income securities. Investors may want to monitor benchmark interest rates, Bendigo Bank's profitability, regulatory capital position and broader credit conditions when assessing the income outlook.

Risks

Capital notes carry materially different risks from deposits. Distributions can be discretionary and may be non-cumulative under the security terms, meaning a missed payment may not necessarily be recovered later. The notes are also subordinated within the issuer's capital structure.

Holders can face conversion, extension or write-down risk if specified regulatory or non-viability conditions occur. Floating-rate distributions may also decline if benchmark interest rates fall, while market prices can fluctuate with changes in credit sentiment and interest-rate expectations.

Investor takeaway

Bendigo Bank Capital Notes' fully franked interim distribution of AUD 1.338 per note, payable on 14 September 2026, carries an annual yield of 4.76%. With 100% franking, the distribution may appeal to eligible income-focused investors, but BENPI remains a subordinated hybrid security rather than a deposit. Investors may want to monitor interest rates, Bendigo Bank's capital strength and the specific terms governing conversion and distributions.