NZ legislation to have no impact on CommBank PERLS
The recent introduction of legislation to the New Zealand Parliament proposing changes to the tax treatment of distributions paid on certain hybrid securities will not impact CommBank PERLS securities, according to the Commonwealth Bank of Australia (CBA).
The bank also confirmed that the legislation, as currently proposed, would not impact the distributions paid on CommBank PERLS securities and they would be expected to be fully franked.
According to the company, the implementation of the changes would not result in CBA seeking to redeem PERLS IX.
The proposed New Zealand legislation referred to hybrid mismatch arrangements including those arising from the issue of Additional Tier 1 regulatory capital by banks and financial institutions through overseas branches.
The changes would aim to respond to rules developed by the Organisation for Economic Co-operation and Development.
CommBank PERLS IX Capital Notes are perpetual, subordinated, unsecured notes, issued by CBA through its New Zealand branch.
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