HSF guides CBA’s offer of CommBank PERLS XV Capital Notes

The team continues to clinch roles in the bank's 15th retail hybrid

HSF guides CBA’s offer of CommBank PERLS XV Capital Notes

Herbert Smith Freehills (HSF) is advising Commonwealth Bank of Australia (CBA) on its offer of CommBank PERLS XV Capital Notes to raise $1.777 billion, marking the bank’s 15th retail hybrid offering.

According to the media release, CommBank PERLS XV 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 will then be used to fund CBA’s business.

It isn’t the first time HSF helped CBA with capital notes transactions, having advised CommBank PERLS X in 2018. The law firm has also played a key role in other bank hybrids, such as Westpac Capital Notes 6 and Macquarie Group Capital Notes 3 and 4 .

The HSF team was led by partners Philippa Stone, Patrick Lowden and Fiona Smedley, with the support of senior associates Charlotte Cameron and Jennie Bian, solicitors Adrian Palladino, David Tilley and Helen Zhang, and graduate Nicole Sung.

“We are delighted to be acting for our valued client, Commonwealth Bank of Australia, on its issue of CommBank PERLS XV Capital Notes,” Stone said. “We are proud of our work with the CBA team on various PERLS transactions over the years, and it was an absolute pleasure to work with the CBA team again.”

As part of the offer, CBA is also undertaking a reinvestment offer via a nominated party, under which eligible holders of PERLS VII can apply to transfer some or all of their PERLS VII and reinvest the proceeds in the PERLS XV.

The joint lead managers of the offer are CBA Markets, ANZ Securities Limited, Bell Potter Securities Limited, Morgans Financial Limited, National Australia Bank Limited, Ord Minnett Limited, Shaw and Partners Limited, UBS AG, Australia Branch and Westpac Institutional Bank.

The arranger and joint lead managers were advised by Allens.

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