The Group Funding team is part of Group Treasury. Our strategy is to ensure sufficient, cost-effective and sustainable funding in the long term to meet the ongoing liquidity needs of the Commonwealth Bank Group and to satisfy the prudential requirements imposed by management and monetary authorities. This strategy is supported by regular calling programs and roadshows to ensure the Bank’s international profile is maintained and its credit strength is well understood by investors and intermediaries.
The Bank targets an ‘AA’ credit rating band and the maintenance of the Bank’s credit rating is paramount. Group Funding is responsible for keeping the ratings agencies informed of all material developments in the Bank Group’s business which may impact on the credit ratings and therefore affect the cost of the Bank’s wholesale funding.
Group Funding’s role is to ensure that the Commonwealth Bank Group has ready access to funding from capital markets offshore and in Australia.
The major borrowing programs are:
- USD70 billion EMTN program
- USD35 billion USCP program
- USD30 billion USMTN program
- Domestic Debt Program
- ECP/CD program
Target markets are sophisticated international and domestic, wholesale and retail investors.
Target costs of funds from long-term and short-term debt raisings are set by Group Funding. These are revised from time to time to reflect changing market conditions and the Bank’s appetite for funding.
Minimum issue size for private placements off the EMTN and USMTN programs is USD1 million (or equivalent) and terms can be as short as one month. Most structures are acceptable and reverse enquiry is encouraged on the Bank's programs.
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