UDPATE 1-Westpac launches A$1 bln 3-year senior bonds

(Adds preliminary pricing details, timeframe)

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SYDNEY, May 26 (Reuters) - Westpac Banking Corp (WBC.AX)
has launched an offer of at least A$1 billion ($781 million) of
three-year, non-government guaranteed senior bonds, it said on
Tuesday.

The bonds will mature in July 2012 and are rated AA by S&P
and Aa1 by Moody's.

Westpac has not released official price guidance but two
investors who have been contacted on the sale said preliminary
pricing suggests a margin of 120 basis points over swap.

Pricing is expected later on Tuesday.

Westpac is solely leading the offer.

This is the first non-guaranteed bond offer this year for
Westpac. Australian banks have been keen users of the
Australian government guarantee, which was put in place late in
2008 to help banks weather the global credit crisis.

More than A$74 billion equivalent has been raised so far by
banks with the guarantee, according to Deutsche Bank data.
(Reporting by Cecile Lefort)