Macquarie Group Limited launches $600 million convertible preference security offer

28 May 2008

A Product Disclosure Statement (PDS) was lodged today with the Australian Securities and Investments Commission (ASIC) for an offer to raise up to $600 million through the issue of up to 6.0 million Macquarie convertible preference securities (CPS) at an issue price of $100 each (Offer). The Offer forms part of Macquarie Group’s ongoing funding and capital management strategy.

The issuer of the Macquarie CPS is Macquarie Capital Loans Management Limited as responsible entity of the Macquarie CPS Trust (the Issuer).

Macquarie CPS are expected to pay investors, subject to CPS terms, fixed rate, unfranked distributions. On 30 June 2013 CPS may be resold, mandatorily converted into Macquarie ordinary shares (subject to certain conditions being satisfied) or redeemed. CPS have been assigned issue credit ratings of ‘BBB’ from Standard & Poor’s and ‘Baa1’ from Moody’s Investor Services and are intended to be quoted on the Australian Securities Exchange (ASX).

The Offer opens on 5 June 2008 and comprises:

• a Shareholder Priority Offer, open to Australian resident registered holders of Macquarie Group Limited ordinary shares;
• a Broker Firm Offer, open to clients of syndicate brokers;
• an Institutional Offer, open to certain institutional investors; and
• a General Offer, open to all other Australian residents.

The closing date for the Shareholder Priority Offer and General Offer is 5.00pm on 26 June 2008 and 10.00am 3 July 2008 for the Broker Firm Offer. Applications must be for a minimum of $2,000 (20 CPS).

Macquarie Group Limited Chief Financial Officer Greg Ward said: "The Offer is being made as part of Macquarie’s ongoing funding and capital management strategy". Mr Ward also said that the Group was well capitalised and positioned for growth over the medium term and had the ability to take advantage of opportunities as they arose.

Macquarie Capital Advisers has been appointed as sole arranger and joint lead manager to the Offer. Citigroup, Goldman Sachs JBWere, JPMorgan, nabCapital, UBS and Westpac have been appointed as joint lead managers to the Offer.

The Macquarie CPS PDS is available in electronic form on Macquarie’s website at www.macquariecpsoffer.com.au. Applicants can pre-register for a free paper copy of the PDS by calling the CPS InfoLine on 1300 726 836 (from within Australia) or +61 3 9415 4336 (from outside Australia) or by registering online at www.macquariecpsoffer.com.au. Application forms will be available when the Offer opens on 5 June 2008

If you have any questions regarding the Offer you should call the CPS InfoLine on 1300 726 836 (from within Australia) or +61 3 9415 4336 (from outside Australia).

Indicative Offer Timetable:

The key dates for the Offer are indicative only and may change without notice. Macquarie Group Limited, in consultation with the joint lead managers, may agree to accept late applications (either generally or in particular cases), to extend any closing date, to close the Offer early without notice, or to withdraw the Offer at any time before CPS are issued.

THIS RELEASE DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES. SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES UNLESS THEY ARE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 OR AN EXEMPTION FROM THE REGISTRATION IS AVAILABLE.

Contacts:

Richard Nelson
Investor Relations
Macquarie Group
Tel: (612) 8232 5008
Email: richard.nelson@macquarie.com

Paula Hannaford
Corporate Communications
Macquarie Group
Tel: (61 2) 8232 4102
Mobile: (61 4) 1394 0180
Email: paula.hannaford@macquarie.com