The Commonwealth Bank of Australia has gone to the US bond markets seeking to raise between US$2 billion to US$5 billion.
According to the Australian Financial Review, CBA looks to have raised $4.5 billion with investors being split $3.25 billion in three and five year tranche and $1.25 billion in the 10-year tranche.
It was the largest ever USD funding deal for CBA.
Previously announced indicative pricing had the three-year senior unsecured fixed bonds at 80 to 85 basis points, while there were also three-year floating, five-year fixed and floating and 10-year fixed notes. All were senior unsecured, except the 10-years, which were subordinated Tier 2 notes.
US bond investors have familiarity with Australia’s big four banks and their credit risk, and were expected to support CBA’s raise.
Meanwhile, the bank has completed its bookbuild for CommBank PERLS XIV Capital Notes early, successfully allocating AUD$1.75 billion under the offer with the margin being set at 2.75 percent per annum.
CBA launched its offer early last week, which included a reinvestment offer for eligible PERLS IX holders.
CBA was the arranger and joint lead manager. ANZ Securities, Bell Potter Securities, Morgans Financial, National Australia Bank, Ord Minnett, Shaw and Partners, UBS AG, Australia Branch and Westpac Institutional Bank were appointed as joint lead managers.
