Commonwealth Bank announces details of retail bond offering

Sydney, 18 November 2010: Commonwealth Bank of Australia (the “Bank”) today lodged with ASX an Offer Document for the inaugural series of CommBank Retail Bonds (the “Offer”).  The Bank intends to raise $500 million, with the ability to raise more or less.  The proceeds of the Offer will be used for general corporate purposes.

CommBank Retail Bonds Series 1 Tranche A are five year, unsubordinated[1] and unsecured bonds[2] which will pay a floating interest rate on a quarterly basis. The interest rate is equal to the sum of the 90 day bank bill rate plus a fixed margin of 1.05% per annum. The minimum interest rate for the first interest period will be fixed at 6.00% per annum.

David Craig, Chief Financial Officer said “We are pleased to launch the first series of CommBank Retail Bonds, demonstrating the Group’s commitment to diversifying its funding sources.  The Group is also pleased to assist in the development of the Australian retail corporate bond market with this benchmark offer from one of Australia’s largest companies.”

Details of the CommBank Retail Bonds Offer

The Offer will comprise:

• a Broker Firm Offer made to Australian clients of brokers to the Offer;
• a Securityholder and Customer Offer made to eligible securityholders and customers of the Bank; and
• a General Offer made to other Australian residents.

Institutional investors may participate in the Offer by contacting the Bank, which is also the Sole Arranger and Bookrunner.  The bookbuild will be conducted on Thursday, 25 November 2010 and will be a volume only bookbuild.  The Offer will close on Friday, 17 December 2010.

The minimum investment in CommBank Retail Bonds is $5,000 and thereafter in multiples of $1,000.

Offer Document

The Offer is being made pursuant to an Offer Document[3]. A copy of the offer Document has been lodged with ASX today. Investors should read the Offer Document in full before deciding to invest in CommBank Retail Bonds. Applicants will need to complete an application form in or accompanying the Offer Document or online at www.commsec.com.au.  This announcement is not advice and has not taken into account your objectives, financial situation or needs.

Key Features of CommBank Retail Bonds

Key Dates for the Offer[4]

Commonwealth Bank of Australia is the Sole Arranger and Bookrunner for the Offer. Citigroup Global Markets Australia Pty Limited, Commonwealth Securities Limited, Evans and Partners Pty Ltd and RBS Equity Capital Markets (Australia) Limited have been appointed as Joint Lead Managers to the Offer.  FIIG Securities Limited, Ord Minnett Limited and Patersons Securities Limited have been appointed as Co-Managers to the Offer.

Additional Information

CommBank Retail Bonds are issued by the Bank. Investors should obtain and read an Offer Document and apply using the Application Form in or accompanying the Offer Document.  Eligible investors can obtain a copy of the Offer Document by:

• calling the CommBank Retail Bonds Information Line on 1800 022 440 (Monday to Friday 8.00am–7.30pm, Sydney time);
• contacting their broker; or
• downloading a copy, available online at www.commsec.com.au.

For additional information, please contact:

The offering of securities referred to this release is open only to investors that are in Australia and, accordingly, this release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of, any U.S. Person (as defined in Regulation S under the U.S. Securities Act of 1933).