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Preference share issue by CBA Capital Australia Limited - Successful pre-registration period sets up $350 Million offer

18 April 2005

CBA Capital Australia Limited (CBA Capital), a wholly owned subsidiary of Australia's largest retail bank Commonwealth Bank of Australia (Commonwealth Bank), confirmed today that it intends to make an offer to the New Zealand public of Redeemable Preference Shares (RPS). The offer will open on Tuesday 19 April.

The new offer seeks to raise $350 million, which would equal the largest hybrid equity issue in New Zealand to date, a perpetual preference share issue made by fellow Commonwealth Bank Group company ASB Capital No. 2 Limited.

CBA Capital has run a four week campaign seeking indications of interest from the public which has been well received, especially given the large number of new issues currently coming to market.

The level of interest in the offer reflects the quality of the instrument, which benefits from a Standard & Poor’s credit rating of A+. The initial dividend rate for the RPS is 7.71% per annum paid quarterly and will be reset annually. The quarterly dividends will consist of a combination of cash payments and imputation credits, and imputation credits will be counted as part of the dividend. The RPS will have a maturity date of 15 April 2015.

This offer is the first time Commonwealth Bank has looked to the New Zealand market and is an excellent opportunity to diversify Commonwealth Bank’s sources of capital. The RPS offer is a part of Commonwealth Bank’s regular capital raising programme and the proceeds of the offer will be used to fund the ongoing growth of Commonwealth Bank’s business. The RPS are not guaranteed by Commonwealth Bank.

The minimum investment is $5,000 and thereafter in multiples of $1,000. The issue is now open and is expected to close on 16 May 2005, with trading commencing on the NZDX on 19 May 2005.

ASB Bank Limited and Deutsche Bank AG, NZ are the joint lead managers for the offer and ASB Securities is the Organising Participant. Investors can request an offer document by contacting ASB Securities.

The RPS are offered under a prospectus and investment statement dated 18 April 2005. Application has been made to New Zealand Exchange Limited for permission to list the RPS and all requirements of NZX relating thereto that can be complied with on or before the date of distribution of this statement have been duly complied with. However, NZX accepts no responsibility for any statement in this statement.

- Ends -

For further information contact:
John te Wechel, General Manager, Group Funding
Commonwealth Bank of Australia
Phone: 612 9378 3100

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