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Commonwealth Bank prices USD leg of its second global MBS issue

8 September 2000

In New York overnight, the Commonwealth Bank priced the USD denominated Notes to be issued under its second global mortgage backed issue, Series 2000-2G Medallion Trust.

The USD 1.06 billion of Class A-1 Notes were priced at 0.20% over three month Libor. The issue was well received and oversubscribed by US investors. The lead manager for the Class A-1 Notes is Merrill Lynch with CSFB, Deutsche Bank and JP Morgan acting as co-managers.

This follows the successful pricing of the domestic tranches of the Series 2000-2G issue which included AUD400 million of Class A-2 Notes, priced at 0.37% over three month BBSW and AUD27 million of Subordinated B Notes, priced at 0.57% over three month BBSW. The expected average life of the Class A and B Notes is 3.1 years and 5.1 years respectively. The lead manager for the AUD denominated Notes was Commonwealth Bank with Macquarie Bank and UBS Warburg acting as co-managers.

Leanne Leong, Head of Securitisation at Commonwealth Bank, said, "The Series 2000-2G issue represented another strategic step in the ongoing programme of accessing the liquidity of the global market, simultaneously supporting domestic and offshore demand."

"Further the level of oversubscriptions in both the US and domestic markets was very pleasing, reflecting strong brand, the quality of the underlying mortgages and the past performance of the previous issues through the Medallion Programme," added Ms. Leong

She also indicated that the pricing of the Notes signalled a preference for bank sponsored transactions and an increased level of understanding of Australian MBS securities by the US investors.

The issue will settle on 14 September 2000.