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 +++++++++++++++++++++++++ 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