Westpac is seeking approval from bondholders to convert to soft bullet structures six covered bonds totalling some Eu4.85bn (A$7.41bn) equivalent in Australian dollars, euros, Norwegian kroner and US dollars that are all its outstanding hard bullet covered bonds.

The last was issued in 2013, with the Australian bank now issuing soft bullet covered bonds. According to Fitch, the bonds being bought back – constituting 23.1% of its outstandings – are its only remaining hard bullets.

Announcing the consent solicitation, Westpac said: “The issuer reviews regulatory and market developments as an active participant in the covered bond market. The proposed amendments align the terms and conditions of the older outstanding series with those commonly seen in the covered bond market to ensure ongoing cost efficiency of the programme.”

The six bonds included in the consent solicitation exercise are:

A$1.7bn 5.75% 2017 series 2013-C3 AU3CB0189322

A$1.9bn FRN 2017 series 2013-C4 AU3FN0014874

Eu1bn 2.125% 2019 series 2012-C6 XS0801654558

Nkr1.8bn 5% 2022 series 2012-C1 XS0735613373

Nkr1bn 5% 2022 series 2012-C2 XS0735794819

US$1bn 2.45% 2016 series 2011-C1 US96122XAA63

Westpac is understood to be the first issuer to include a 144A issue (the US$1bn bond) in a general hard to soft bullet exercise since Credit Suisse did so in the first, in November 2014, with market participants in the interim having cited complications associated with the US format as the reason for excluding such issuance.

Bondholders consenting to the proposals by an early instruction deadline of 16 March are eligible for a five cent early participation fee. Meetings are scheduled for 1 April. Credit Suisse and Westpac are solicitation agents.

Moody’s and Fitch said their triple-A ratings of the covered bonds included in the exercise will not be affected.