ANZ exposure to Marconi

Document date:  Wed 24 Jul 2002
Published:  Wed 24 Jul 2002 00:00:00
Document No:  192623
Document part:  A
Market Flag:  Y
Classification: 

AUSTRALIA AND NEW ZEALAND BANKING GROUP       2002-07-24  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

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Following the trading update last night by Marconi PLC in which it
stated negotiations with its banking syndicate over a debt-equity
swap are "relatively advanced", ANZ confirms it has credit exposures
to Marconi PLC of approximately US$131 million.

Marconi PLC, formerly GEC, is a global telecommunications equipment
and solutions company headquartered in London and has been an ANZ
customer since 1947.

Negotiations between Marconi and its syndicate bankers are still to
be finalised and it is inappropriate to comment further at this
stage.

ANZ Chief Financial Officer, Mr Peter Marriott said: "Marconi was
investment grade just over 12 months ago but it has been severely
impacted by the downturn in the telecommunications sector. In recent
years however ANZ has substantially reduced its exposure to Marconi.
ANZ's lending to the telecommunications sector represents
approximately 2% of total lending assets."

ANZ highlighted in its 2002 Interim Results announcement that it
remained concerned about the international credit outlook, expecting
specific provisions to remain moderately high. While domestic credit
quality remains strong, total specific provisions for the Group are
nevertheless expected to remain at levels similar to the first half.

ANZ remains strongly provisioned and expects to achieve a full year
profit in line with market expectations.

For media enquiries, contact         For investor enquiries, contact:

Paul Edwards                         Philip Gentry
HEAD OF GROUP MEDIA RELATIONS        HEAD OF INVESTOR RELATIONS
Tel: 03-9273 6955 or 0409-655 550    Tel 03-9273 4185 or 0427-377535
Email: edwardp12(a)anz.com           Email: gentryp(d)anz.com