King & Wood Mallesons (KWM) has advised Warwick Credit Union (Warwick) on Australia's first ever issuance of capital notes convertible to mutual equity interests (MEIs) by a mutually owned authorised deposit-taking institution (ADI). The transaction is intended to support Warwick's capital adequacy.
The KWM team was led by Partners Jo Dodd and Scott Heezen, and assisted by Solicitors Marina Lauer, Joshua Fisher and Melissa Simpson.
Commenting on the deal, Jo Dodd said: "We were delighted to assist Warwick Credit Union on this significant issuance, which represents an important step not only for Warwick but for all mutually owned ADIs."
"Warwick has led the way for other mutuals to raise capital through the issuance of regulatory capital instruments convertible to MEIs."
This was the first instance of a mutually owned ADI raising capital under the mechanism provided in Attachment K to the ADI capital adequacy standard APS 111, which has recently been revised by APRA in line with the recommendations of the Hammond Review.
