Commonwealth Bank of Australia (ASX: CBA) has today launched an offer for CommBank PERLS XVI Capital Notes (expected ASX Code: CBAPM), to raise $750 million, with the ability to raise more or less.

PERLS XVI have an Initial Face Value of A$100 and will qualify as Tier 1 Capital of CBA. These securities are structured as perpetual, subordinated, unsecured and convertible notes.

Distributions are discretionary, non-cumulative, floating rate and expected to be fully franked, paid on a quarterly basis in arrears until converted or redeemed.

Shaw and Partners is delighted to be appointed as Joint Lead Manager to the Commonwealth Bank of Australia PERLS XVI Offer.

The margin is expected to be between 3.00% and 3.20% pa and will be determined through the Bookbuild.

The Distribution Payment Dates are 15 March, 15 June, 15 September and 15 December. The first Distribution is scheduled to be paid on 15 September 2023. CommBank XVI Capital Notes are Callable at CBA’s option on 17 June 2030, 16 December 2030 or 16 June 2031 (first approximately 7 years), or following a Tax or Regulatory Event.  CommBank XVI Capital Notes will  Mandatorily Convert into Ordinary Shares on 17 June 2033 (subject to certain conditions), unless they are converted, Redeemed or Resold earlier.

The offer is only available to Wholesale clients (Sophisticated or Professional) and clients that receive personal financial product advice from a financial adviser.

For more information, please contact your Shaw and Partners adviser.