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Commonwealth Bank of Australia to raise A$750M via notes

Commonwealth Bank of Australia plans to raise A$750 million through an offer of subordinated notes.

The bank said in a March 7 release that the notes have a call date of April 15, 2025, and a mandatory exchange date of April 15, 2027, whereby they will convert into ordinary shares. These are subject to regulatory and other conditions.

The expected margin on the notes, which qualify as Tier 1 capital, is between 3.40% and 3.60% above the bank bill rate. The margin will be determined by a March 14 bookbuilding exercise.

The opening and closing dates for the offer are scheduled for March 15 and March 29, respectively. The issue date is April 6.

Net proceeds from the offer will be used to fund the lender's business.

Commonwealth Bank of Australia is the arranger and joint lead manager of the exercise. ANZ Securities Ltd., Morgan Stanley Securities Australia Ltd., Morgans Financial Ltd. and Westpac Institutional Bank have also been appointed as joint lead managers. Crestone Wealth Management Ltd., Ord Minnett Ltd., and Shaw and Partners Ltd. are co-managers.