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UPDATE 1-Commonwealth Bank of Australia raises $974 mln from capital notes issue

Published 09/03/2018, 06:42 pm
Updated 09/03/2018, 06:50 pm
© Reuters.  UPDATE 1-Commonwealth Bank of Australia raises $974 mln from capital notes issue
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(Adds context, details about note issuance, share movement)

March 9 (Reuters) - Commonwealth Bank of Australia CBA.AX said on Friday that it has raised about A$1.25 billion ($974.3 million) through a bookbuild for its offer of hybrid capital notes, much higher that its initial expectation of A$750 million.

The margin for the notes was set at 3.40 percent per annum, the bank said in a statement, at the bottom-end of its estimate.

The issue attracted strong demand from syndicate brokers and institutional investors, CBA said, adding the offer of the notes to securityholders would open on March 15.

The bank had earlier this week said that it expected to raise about A$750 million through an issue of 'PERLS X' Capital notes, with an anticipated margin of 3.4 percent to 3.6 percent above the prevalent bank bill rate. has said the capital will be used to fund its business, though it gave few other details. Australia's biggest lender suffered a surprise drop in its first-half 2018 profit, stemming from expenses related to an anti-money laundering lawsuit against the bank. issue follows Westpac Banking Corp's WBC.AX announcement last month that it would issue debt to raise a similar amount. bank's shares ended 0.9 percent higher on Friday, compared to a broader market .AXJO rise of 0.3 percent.

($1 = 1.2830 Australian dollars)

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