CBA today announced the offer of, and lodged a prospectus for a new Tier 1 hybrid, CommBank PERLS XI Capital Notes (PERLS XI). The Offer includes a Reinvestment Offer for Eligible PERLS VI (CBAPC) Holders.

PERLS XI will qualify as Tier 1 Capital of CBA. The Offer is expected to raise A$750 million, with the ability to raise more or less. PERLS XI are expected to be quoted on ASX under the trading code CBAPH.

PERLS XI are subordinated, unsecured notes scheduled to pay floating rate distributions quarterly, which are expected to be fully franked. PERLS XI have a Call Date of 26 April 2024 and will mandatorily Exchange into Ordinary Shares on 26 April 2026 (subject to certain conditions).

PERLS XI have an Initial Face Value of A$100, and the net proceeds of the Offer will be used to fund the Group’s business.

Distributions: Quarterly, floating rate to be based on a bookbuild margin range of 3.70% -3.90% per annum above the 90 day BBSW rate. Distributions are expected to be fully franked.

The offer is only open to Australian resident clients.

For more information, contact your Shaw and Partners Adviser.