Director - Research, Consulting and Advisory, BondAdviser

Nicholas Yaxley

Director - Research, Consulting and Advisory

Australian bonds & fixed income research

BondAdviser

BondAdviser is the central reference point for intelligent information on Australian fixed income markets. We help you make informed decisions by providing unbiased research, transparent pricing data, analytics, portfolio tools and education.

BondAdviser has the broadest coverage of retail-accessible ASX-listed and over-the-counter Australian bonds and fixed income securities. We make it easy for you to review and compare investments before you place an order with your broker or dealer.

Credit

On the 20th of February 2017, the Commonwealth Bank of Australia (CBA) announced a new issue namely PERLS IX (Prospective ASX Code: CBAPF). The notes are expected to be issued on the 31st of March 2017. The purpose of this transaction is to provide Regulatory Capital for the group but more specifically, it will be treated as additional Tier 1 capital. The indicative size of the offer is [$750 million] but CBA retain the ability to change the issue size.The notes will be offered to eligible holders of Colonial Subordinated Notes (ASX: CNGHA) (priority securityholder offer) and through the broker firm offer. These securities are structured as perpetual, unsecured, convertible, transferable, redeemable and subordinated notes. Distributions are discretionary, fully franked, floating rate, non-cumulative and subject to payment conditions. Interest payments will be paid on a quarterly basis based on a calculation equal to 90-Day BBSW plus an interest margin in the range of [3.90 - 4.10%] set through bookbuild, multiplied by (1 – Current Company Tax Rate). If a distribution is not paid, the issuer is prevented from paying any distributions to ordinary shareholders until a full distribution is paid on a subsequent payment date.Summary details of the transaction are listed in the table below:

On the 20th of February 2017, the Commonwealth Bank of Australia (CBA) announced a new issue namely PERLS IX (Prospective ASX Code: CBAPF). The notes are expected to be issued on the 31st of March 2017. The purpose of this transaction is to provide Regulatory Capital for the group but more specifically, it will be treated as additional Tier 1 capital. The indicative size of the offer is [$750 million] but CBA retain the ability to change the issue size.The notes will be offered to eligible holders of Colonial Subordinated Notes (ASX: CNGHA) (priority securityholder offer) and through the broker firm offer. These securities are structured as perpetual, unsecured, convertible, transferable, redeemable and subordinated notes. Distributions are discretionary, fully franked, floating rate, non-cumulative and subject to payment conditions. Interest payments will be paid on a quarterly basis based on a calculation equal to 90-Day BBSW plus an interest margin in the range of [3.90 - 4.10%] set through bookbuild, multiplied by (1 – Current Company Tax Rate). If a distribution is not paid, the issuer is prevented from paying any distributions to ordinary shareholders until a full distribution is paid on a subsequent payment date.Summary details of the transaction are listed in the table below:

Commonwealth Bank of Australia

New Issue: CBA PERLS IX Capital Notes