The Commonwealth Bank of Australia has followed some of its rivals in raising funds through the bond market to bolster its regulatory capital requirements.
CBA last week attracted $6 billion worth of demand with $2.9bn for its three-year offer, (59 percent floating and the remainder fixed), and $3.1bn for its five-year offer, (64 percent floating and the remainder fixed) according to The Australian.
The price was set at 80 basis points above the three-month BBSW for its 3-year raise that offers a 4.2 percent yield on the fixed tranche.
The Australian says the CBA has allocated $1.2bn for the three-year floating bond, $1bn for the three-year fixed bond, $1.4bn for the five-year floating bond, and $900m for the five-year fixed.
Also read: Meta Jumps Into Bond Market For First Time
The ANZ in the past fortnight raised $1.75 billion from its 10-year Tier 2 debt raising from $3 billion in demand with a preference being shown for fixed-rate allocations.
Earlier, NAB attracted $2.8bn of demand for its $1.25bn bond raising with $250 million in floating rate notes and $1 billion in fixed rate. The margin was 2.8 percent above BBSW.
The yield was a high 6.322 percent.
