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Allens advises CBA on $1.25bn Hybrid Issue

15 November 2018

Allens is advising Commonwealth Bank of Australia (CBA) on its offer of CommBank PERLS XI Capital Notes, originally announced on 1 November 2018 to raise approximately A$750 million (or more or less) (Offer), and subsequently increased to A$1.25 billion following strong demand from syndicate brokers and institutional investors in the bookbuild. The Offer includes a Reinvestment Offer for existing PERLS VI holders and a CBA securityholder offer, and is expected to close by 7 December 2018.

CommBank PERLS XI Capital Notes are subordinated, unsecured notes issued by CBA and the proceeds from the new issue will raise Tier 1 Capital to satisfy CBA's regulatory capital requirements and maintain the diversity of CBA's sources and types of funding. The net proceeds of the Offer will be used to fund CBA's business.

Allens Partners and Co-Heads of Equity Capital Markets, Julian Donnan and Robert Pick, led the Allens team on the matter.

'We were delighted to work with the CBA Treasury and Legal teams in bringing this issue to the market to further strengthen CBA's Tier 1 Capital position' Mr Pick said.

Mr Donnan noted that, 'Whist there has been some recent turbulence in equity markets, it is pleasing to see evidence of ongoing strong demand for hybrid capital from Australia's banks'.

Allens legal team Corporate: Julian Donnan, Partner (Sydney); Robert Pick, Partner (Melbourne); Niki Haralambidis, Associate (Melbourne); Elise Blume, Lawyer (Sydney) and Bridgette Gorman, Lawyer (Melbourne)

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Notes for editors.

Allens is a commercial law firm working throughout Australia and Asia. Through its integrated alliance with Linklaters it provides clients access to 40 offices in 28 countries around the world.