Herbert Smith Freehills is pleased to be advising Commonwealth Bank of Australia (CBA) on its issue of CommBank PERLS VII Capital Notes and concurrent PERLS V Reinvestment Offer to raise approximately A$2 billion (with the ability to raise more or less) (Offer) announced on 18 August 2014.
CBA is one of Australia’s leading providers of integrated financial services including retail banking, premium banking, business banking, institutional banking, funds management, superannuation, insurance and investment and share broking products and services.
CommBank PERLS VII Capital Notes are subordinated, unsecured notes. The proceeds from the issue will raise Tier 1 Capital to satisfy CBA’s regulatory capital requirements and 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.
Herbert Smith Freehills’ capital markets team was led by partners Philippa Stone, Philip Hart, Patrick Lowden and executive counsel Lauren Magraith, with assistance from lawyers Lucy Hall, Thomas Cooper, Ben Robinson, Adrian Amer and Rowan Kellam.
Herbert Smith Freehills is working closely with CBA’s team, including Group Treasurer Paolo Tonucci, Head of Capital and Regulatory Strategy Tricia Ho-Hudson, Executive Manager of Capital and Regulatory Strategy Michael Davis and Head of Advisory and M&A Legal Mark Alexander.
Greenwoods & Freehills are advising CBA in relation to taxation.
The arrangers for the Offer are Commonwealth Bank of Australia (Capital Markets Division) (CBA Markets) and Morgan Stanley Australia Securities Limited (Morgan Stanley). The joint lead managers are CBA Markets, Morgan Stanley, Goldman Sachs Australia Pty Ltd, J.P. Morgan Australia Limited, Morgans Financial Limited, UBS AG, Australia Branch and Westpac Institutional Bank. The joint lead managers were advised by Ashurst.
Ms Stone said “We are delighted to be acting for our long-standing client, Commonwealth Bank of Australia, on its issue of CommBank PERLS VII Capital Notes. The Offer is expected to be the largest hybrid transaction undertaken this year and once again utilises the on-market buy-back structure pioneered by Herbert Smith Freehills for CBA’s PERLS IV reinvestment offer.”
