Commonwealth Bank proposed retail bond offering
Sydney, 8 November 2010: Commonwealth Bank of Australia (the Bank) today announced its intention to offer the inaugural series of CommBank Retail Bonds (the Offer), subject to market conditions.
CommBank Retail Bonds Series 1 are expected to be five year, unsubordinated* and unsecured bonds which will pay a floating rate interest on a quarterly basis. The interest rate will equal the sum of the 90 day bank bill rate plus a margin of between 100 and 115 basis points to be determined prior to the launch of the Offer. The minimum interest rate for the first interest period will be fixed at 6.00% per annum. The Bank will apply for quotation of CommBank Retail Bonds on ASX Limited (ASX).
The Bank will lodge an offer document with ASX shortly, which will provide further information about the Offer, including the final margin.
The net proceeds of the Offer will be used by the Group for general corporate purposes.
The Group is pleased to be the largest Australian company to offer bonds in this way and to be able to contribute to the development of the corporate bond market in Australia.
For additional information, please contact:
P: 02 9117 7051
M: 0406 316 725
*However, CommBank Retail Bonds rank behind any creditors preferred by law (such as Government guaranteed depositors) and secured creditors.