CBA to tap retail bond market
The Commonwealth Bank of Australia (CBA) has announced its intentions to roll out the retail bond offering, CommBank Retail Bonds.
CBA head of investor relations Warwick Bryan said the bank hoped to launch the offer by Christmas.
“We’ll set the initial offering at 500 million, but if we get more support than that, we’ll extend it,” Bryan said.
“This is the first retail bond offering the bank had rolled out. We are aware that the retail bond market is not mature here in Australia, but we’ve got our fingers crossed and we’ll try and start to build the sector,” he added.
CommBank Retail Bonds Series 1 are expected to be five-year, unsubordinated and unsecured bonds that will pay a floating rate interest on a quarterly basis.
The minimum interest rate for the first interest period will be fixed at 6 per cent per annum. The bank said the group would use the net proceeds of the offer for general corporate purposes.
“The group is pleased to be the largest Australian company to offer bonds in this way and to be able to contribute to the development of the corporate bond market in Australia,” the bank stated in the announcement on the Australian Securities Exchange.
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
