On 24 February 2021, Commonwealth Bank of Australia (ASX: CBA) launched an offer for Commbank PERLS XIII Capital Notes (Notes) (prospective ASX: CBAPJ), to raise $750 million, with the ability to raise more or less.
These securities are structured as perpetual, subordinated, unsecured, convertible notes. Distributions are discretionary, non-cumulative, floating rate and expected to be fully franked, paid on a quarterly basis in arrears until converted or redeemed. The margin is guided at 2.75% to 2.95% p.a. above 90-day BBSW.
CBAPJ are ASX-listed AT1 securities, similar in structure to other CBA AT1 hybrids such as CBAPI. This security has no fixed maturity date but is scheduled for mandatory conversion into CBA ordinary shares on 20 October 2028, or on the first subsequent distribution payment date on which conversion conditions are satisfied. On the first call date (20 October 2026), CBA has the option to redeem the Notes for cash at face value subject to APRA approval or resell the Notes at face value.
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