Commonwealth Bank announces details of retail bond offering

Sydney, 18 November 2010: Commonwealth Bank of Australia (the “Bank”) today lodged with ASX an Offer Document for the inaugural series of CommBank Retail Bonds (the “Offer”).  The Bank intends to raise $500 million, with the ability to raise more or less.  The proceeds of the Offer will be used for general corporate purposes.

CommBank Retail Bonds Series 1 Tranche A are five year, unsubordinated[1] and unsecured bonds[2] which will pay a floating interest rate on a quarterly basis. The interest rate is equal to the sum of the 90 day bank bill rate plus a fixed margin of 1.05% per annum. The minimum interest rate for the first interest period will be fixed at 6.00% per annum.

David Craig, Chief Financial Officer said “We are pleased to launch the first series of CommBank Retail Bonds, demonstrating the Group’s commitment to diversifying its funding sources.  The Group is also pleased to assist in the development of the Australian retail corporate bond market with this benchmark offer from one of Australia’s largest companies.”

Details of the CommBank Retail Bonds Offer

The Offer will comprise:

  • a Broker Firm Offer made to Australian clients of brokers to the Offer;
  • a Securityholder and Customer Offer made to eligible securityholders and customers of the Bank; and
  • a General Offer made to other Australian residents.

Institutional investors may participate in the Offer by contacting the Bank, which is also the Sole Arranger and Bookrunner.  The bookbuild will be conducted on Thursday, 25 November 2010 and will be a volume only bookbuild.  The Offer will close on Friday, 17 December 2010.

The minimum investment in CommBank Retail Bonds is $5,000 and thereafter in multiples of $1,000.

Offer Document

The Offer is being made pursuant to an Offer Document[3]. A copy of the offer Document has been lodged with ASX today. Investors should read the Offer Document in full before deciding to invest in CommBank Retail Bonds. Applicants will need to complete an application form in or accompanying the Offer Document or online at  This announcement is not advice and has not taken into account your objectives, financial situation or needs.

Key Features of CommBank Retail Bonds


  1. For the first Interest Period, the Interest Rate will be the higher of 6.00% per annum and the rate calculated in (ii) below.
  2. For all other Interest Periods, the Interest Rate is equal to the sum of the Bank Bill Rate plus the Margin.
  • The first Interest Payment Date is 15 April 2011.
  • Interest is not deferrable by the Bank nor are payments discretionary.
  • The Bank Bill Rate is set on the first Business Day of each Interest Period.
  • The Margin is fixed at 1.05% per annum until the Maturity Date.

Maturity & Redemption Rights

  • The Maturity Date is 24 December 2015.
  • On the Maturity Date or an earlier redemption date, investors will receive the Face Value of each CommBank Retail Bond plus the final payment of Interest for the final Interest Period.
  • The Bank only has the right to redeem all (but not some only) CommBank Retail Bonds on issue if a Tax Event occurs.  The Bank does not have any other early redemption rights.
  • Holders do not have a right to request that their CommBank Retail Bonds be redeemed early.  To realise their investment, Holders can sell their CommBank Retail Bonds on ASX at the prevailing market price.

Quoted on ASX

The Group will make an application for CommBank Retail Bonds to be quoted on the ASX and they are expected to trade under ASX code “CBAHA”.

Key Dates for the Offer[4]

Lodgement of Offer Document with ASX

Thursday, 18 November 2010

Opening Date for the Offer

Thursday, 18 November 2010


Thursday, 25 November 2010

Closing Date for the Offer

Friday, 17 December 2010

Issue Date

Friday, 24 December 2010

Commencement of deferred settlement trading

Friday, 24 December 2010

Despatch of holding statements

Thursday, 30 December 2010

Commencement of trading on normal settlement basis

Friday, 31 December 2010

Commonwealth Bank of Australia is the Sole Arranger and Bookrunner for the Offer. Citigroup Global Markets Australia Pty Limited, Commonwealth Securities Limited, Evans and Partners Pty Ltd and RBS Equity Capital Markets (Australia) Limited have been appointed as Joint Lead Managers to the Offer.  FIIG Securities Limited, Ord Minnett Limited and Patersons Securities Limited have been appointed as Co-Managers to the Offer.

Additional Information

CommBank Retail Bonds are issued by the Bank. Investors should obtain and read an Offer Document and apply using the Application Form in or accompanying the Offer Document.  Eligible investors can obtain a copy of the Offer Document by:

  • calling the CommBank Retail Bonds Information Line on 1800 022 440 (Monday to Friday 8.00am–7.30pm, Sydney time);
  • contacting their broker; or
  • downloading a copy, available online at

For additional information, please contact:



Nichole Ismay 

Warwick Bryan

Media Relations   

Investor Relations

Commonwealth Bank    

Commonwealth Bank

02 9117 7051

0406 316 725

The offering of securities referred to this release is open only to investors that are in Australia and, accordingly, this release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of, any U.S. Person (as defined in Regulation S under the U.S. Securities Act of 1933).

[1] However, holders of CommBank Retail Bonds rank behind any creditors preferred by law (such as Government guaranteed depositors) and secured creditors.

[2] CommBank Retail Bonds are not Protected Accounts or a deposit liability of the Bank.

[3] The Offer Document is not a prospectus. CommBank Retail Bonds are debentures for the purposes of the Corporations Act 2001 (Cth) (“Corporations Act”) and, under section 708(19) of the Corporations Act, do not require disclosure through a prospectus for their issue.

[4] The key dates for the Offer are indicative only and subject to change without notice. The Bank may, in consultation with the Arranger and Joint Lead Managers, vary the timetable, including to close the Offer early; close the Securityholder and Customer Offer early; extend the Closing Date; or to withdraw the Offer at any time prior to Issue. If any of the dates are changed, subsequent dates may also change.