Commonwealth Bank of Australia’s A$1.25 billion offer of CommBank PERLS XI Capital Notes

Ashurst has advised the arranger and joint lead managers on Commonwealth Bank of Australia’s (CBA) offer of CommBank PERLS XI Capital Notes (PERLS XI).

PERLS XI are subordinated, unsecured notes scheduled to pay floating rate distributions quarterly and are expected to be quoted on ASX under the trading code “CBAPH” with an initial face value of A$100.

The offer comprises a Broker Firm Offer, a Reinvestment Offer to eligible PERLS VI holders and a Securityholder Offer to eligible CBA securityholders, and is expected to raise A$1.25 billion with the ability to raise more or less. PERLS XI will qualify as Tier 1 Capital of CBA and will allow CBA to 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.

The Perpetual Exchangeable Resaleable Listed Securities (PERLS VI) issued in October 2012 have a call date of 15 December 2018, and CBA issued a resale and redemption notice in relation to this security.

The issue of PERLS XI under the offer is expected to occur on 17 December 2018, with deferred settlement trading and normal settlement trading to occur on 18 December 2018 and 20 December 2018 respectively.

CBA is the arranger and joint lead manager to the offer. ANZ Securities Limited, Morgan Stanley Securities Australia Limited, Morgans Financial Limited and Westpac Institutional Bank have also been appointed as joint lead managers.

The Ashurst team was led by corporate partner Sarah Dulhunty (picture), assisted by senior associate Andrew Kim and lawyer Diana Oh.


Involved fees earner: Sarah Dulhunty – Ashurst; Andrew Kim – Ashurst; Diana Oh – Ashurst;

Law Firms: Ashurst;

Clients: Morgan Stanley; Westpac Banking Corporation; Commonwealth Bank of Australia; ANZ Securities Limited; Morgans Financial Limited;