Press Release

Macquarie Group prices successful $A540 million capital raising

Sydney, 01 May 2009

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS

Macquarie Group Chief Financial Officer, Mr. Greg Ward, said the Group had successfully priced an $A540 million capital raising in the domestic and international capital markets today.

Macquarie Group Chief Financial Officer, Mr. Greg Ward, said the Group had successfully priced an $A540 million capital raising in the domestic and international capital markets today.

The institutional private placement, by way of a fixed bookbuild, will result in the issue of 20 million additional ordinary shares at $A27.00 per ordinary share. The placement shares will rank pari-passu with existing ordinary shares and will participate in the 2009 final dividend to be paid on 3 July 2009.

The price reflects a 13.2% discount to the 5 day volume weighted average price (VWAP). The issue of the placement shares will not require shareholder approval.

Mr. Ward said the Group’s private placement, in conjunction with other announced capital initiatives (subject to shareholder approval), will provide Macquarie Group with an expected $A4.1 billion buffer of capital in excess of the Group’s minimum capital requirements.

“The issue received strong support from existing and new local and international investors and was significantly oversubscribed,” Mr. Ward said.

“It was pleasing that the vast majority of our institutional shareholders have participated in the issue, underlining their continued support” Mr. Ward said.

Mr Ward said that the additional capital raised would further enhance Macquarie’s strong capital position and provide flexibility to continue to take advantage of current and future market opportunities.

Settlement is scheduled to take place on Thursday 7 May 2009 and the shares are scheduled to commence trading on a cum dividend basis on Friday 8 May 2009.

Mr. Ward also announced that all eligible Macquarie ordinary shareholders will have an opportunity to participate in a capital raising by way of a share purchase plan (SPP). The SPP will provide eligible Macquarie shareholders with the opportunity to invest up to approximately $A15,000 (subject to discretionary scale-back) in Macquarie’s ordinary shares at the lower of:

  • $26.60 per share which is the institutional issue price under the placement adjusted for the 2009 final dividend of $0.40 per share; and
  • a 5% discount to the VWAP of Macquarie ordinary shares during the 5 business days before the closing date for applications, in either case, without brokerage or other transaction costs.

Holders of the Macquarie’s ordinary shares who are registered as at 7.00 pm (AEST) on 30 April 2009 and whose addresses (as recorded in Macquarie’s register of members) are in Australia or New Zealand will generally be eligible to participate in the SPP. However, investors who hold their shares via Australian or New Zealand nominees but are not themselves residents of Australia or New Zealand may not be eligible to participate in the SPP. In particular, US residents will not be eligible to participate. Application forms will be mailed to eligible Australian and New Zealand Macquarie ordinary share holders on or around 11 May 2009 and the closing date for applications is expected to be on or around 29 May 2009. The SPP offer will be non-renounceable and shares issued under the SPP are expected to be allotted on or around 5 June 2009.

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