ANZ Announces Pricing of Tender Offer for Any and All of Certain of Its Outstanding Notes

MELBOURNE, Australia, Jan. 13, 2011 /PRNewswire/ -- Australia and New Zealand Banking Group Limited (the "Company"), one of Australia's largest banking and financial groups, announced today the determination of the pricing for its previously announced cash tender offer (the "Tender Offer") to purchase any and all of its 3.20% Senior Commonwealth Guaranteed Notes due December 15, 2011 (the "Notes").  Additional terms and conditions of the Tender Offer are set forth in the Offer to Purchase dated December 30, 2010 (the "Offer to Purchase") and the related Letter of Transmittal (the "Letter of Transmittal").  The offer will expire at 5:00 p.m., New York City Time, on January 13, 2011, unless extended (the "Expiration Date").

The Company will pay holders who validly tendered and did not validly withdraw their Notes at or prior to the Expiration Date, the purchase price of $1,026.59 for each $1,000 principal amount of its Notes accepted for purchase, plus accrued and unpaid interest up to, but not including, the settlement date.

The purchase price has been determined for the Notes by reference to the applicable fixed spread specified for such Notes over the yield based on the bid-side price of the applicable U.S. Treasury Security ("Reference Yield"), as calculated by BofA Merrill Lynch, the Dealer Manager, at 11:00 a.m., New York City time, on January 13, 2011.  The formula for determining the purchase price is set forth in Schedule A of the Offer to Purchase.  The purchase price, the applicable Reference Yield and the accrued and unpaid interest, assuming a settlement date of January 14, 2011, is detailed in the table below.

The settlement date for the Tender Offer is expected to be the first business day following the Expiration Date and currently is expected to be January 14, 2011.  The Tender Offer remains subject to meeting certain conditions, and the Company reserves the right to extend, terminate, withdraw or amend the Tender Offer at any time subject to applicable law.

The Company has retained BofA Merrill Lynch as Dealer Manager.  Global Bondholder Services Corporation has been retained to serve as the depositary and to serve as the information agent for the tender offer.

For additional information regarding the terms of the Tender Offer, please contact: BofA Merrill Lynch at (888) 292-0070 (toll free) or (980) 388-9217 (collect).

This news release is not an offer to purchase or a solicitation of an offer to sell any securities.  The Tender Offer is being made only pursuant to the terms of the Offer to Purchase, and the related Letter of Transmittal.

Requests for documents and questions regarding the tendering of the Notes may be directed to Global Bondholder Services Corporation, at (866) 294-2200 (toll free).

About the Company

The Company is one of the four major banking groups headquartered in Australia.  The Company, together with its subsidiaries, provides a broad range of banking and financial products and services to retail, small business, corporate and institutional clients.  The Company conducts its operations primarily in Australia, New Zealand and the Asia Pacific region.  It also operates in a number of other countries including the United Kingdom and the United States.

Additional information about the Company (including the Company's most recent annual audited consolidated financial statements) is available on the Company's website at www.anz.com/aus/shares/finance/disclosure.asp.

The statements in this press release which are not historical facts may be forward-looking statements.  Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date that they are made and which reflect management's current estimates, projections, expectations or beliefs and which involve risks and uncertainties that could cause actual results and outcomes to be materially different.  Risks and uncertainties that may affect the future results of the company include, but are not limited to, adverse results from pending or future government investigations, lawsuits or private actions, the competitive environment, changes in government regulations, changing relationships with customers, payers, suppliers and strategic partners and other factors discussed in the Offer to Purchase.

Web site:  http://www.anz.com

SOURCE Australia and New Zealand Banking Group Limited