Australian Banc Capital Securities Trust Announces Exercise of Over-Allotment Option


TORONTO, Jan. 13 /CNW/ - Connor, Clark & Lunn Capital Markets Inc. (the "Manager") is pleased to announce that the syndicate of agents for the initial public offering of Australian Banc Capital Securities Trust (the "Fund") has exercised its over-allotment option and acquired an additional 790,010 Class A Units of the Fund.  In total, the Fund issued 14,790,010 Class A Units and 581,576 Class F Units (collectively the "Units") at a price of $10.00 per Unit for total gross proceeds of $153,715,860.  The Class A Units are listed on the Toronto Stock Exchange under the symbol AUZ.UN.  Class F Units are not listed on a stock exchange but may be converted into Class A Units on a weekly basis.

The Fund's investment objectives are to (i) provide Unitholders with quarterly, tax-advantaged distributions consisting primarily of returns of capital and (ii) provide exposure to a portfolio consisting primarily of Capital Securities issued by the Big Four Australian Banks (Australia and New Zealand Banking Group, Commonwealth Bank of Australia, National Australia Bank, and Westpac Banking Corporation). Based on current estimates, the Fund's initial distribution target is expected to be approximately $0.15 per Unit per quarter, consisting primarily of returns of capital, representing an initial yield on the Unit issue price of 6.0% per annum.

The Fund does not have a fixed distribution, but intends to make quarterly distributions based on the actual and expected distributions on the Capital Securities less the Fund's estimated expenses. Given that a portion of the Portfolio will be invested in floating rate Capital Securities, distributions will vary with changes in short term interest rates in Australia.

Connor, Clark & Lunn Capital Markets Inc. is the Manager of the Fund. The Manager also acts as the manager of Canadian Banc Capital Securities Trust, North American Financials Capital Securities Trust and HBanc Capital Securities Trust, and is part of the Connor, Clark & Lunn Financial Group, which is responsible for the investment of approximately $37 billion in financial assets as at September 30, 2010.

The Units were offered for sale by a syndicate of agents led by BMO Capital Markets, HSBC Securities (Canada) Inc. and CIBC, and includes RBC Capital Markets, National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., GMP Securities L.P., Macquarie Capital Markets Canada Ltd., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Dundee Securities Corporation, Mackie Research Capital Corporation and Wellington West Capital Markets Inc.

SOURCE Australian Banc Capital Securities Trust

For further information:

please visit or contact:

Darren Cabral
Vice President
Connor, Clark & Lunn Capital Markets Inc.
(416) 214-6182 or 1 (888) 276-2258

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Australian Banc Capital Securities Trust

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