Commonwealth Bank of Australia taps Japanese retail investors again

12 January 2001

Commonwealth Bank of Australia today announced the launch of an AUD250 million bond issue targeted at Japanese retail investors. The 3 year deal, lead managed by Nomura Securities, is the Bank's third Japanese retail targeted transaction in the last 12 months and takes advantage of strong redemption flows and a renewed interest in Australian dollars by Japanese retail investors. It is the largest Australian dollar issue into Japan since 1998.

The Notes will be marketed to Japanese retail investors through Nomura's 125 branches in Japan. To reach those investors, it was necessary for the Bank to file a Securities Registration Statement, a prospectus-like document, with the Japanese Ministry of Finance.

According to John te Wechel, Head of Group Funding at Commonwealth Bank, "this latest issue continues the Bank's global funding strategy of developing sustainable funding sources in a diverse range of wholesale and retail markets."

"Japan is an important part of our global funding strategy and we are already well known to Japanese institutional investors as a result of many transactions done over the years. This latest retail issue builds on the success of the previous issues and enhances the Bank's access to thousands of Japanese retail investors." Early feedback from Nomura's salesforce indicates that the issue will be placed to around 25,000 investors with an average parcel size of approximately AUD 10,000.

The bonds mature on 15 January 2004 and carry a 5.0 per cent coupon.