By Cristal Cody
Chicago, March 4 – Commonwealth Bank of Australia sold $4.5 billion of notes across five tranches in the Thursday market, according to information from a market source.
The bank sold two pairs of floating-rate/fixed-rate notes and then a longer-dated tier 2 subordinated note tranche.
For the first pair, due March 14, 2025, the bank priced $650 million of floaters with a coupon based on SOFR plus 74 basis points and $1.25 billion of 2.296% notes with a spread of Treasuries plus 63 bps. Price talk on the fixed-rate tranche was in the Treasuries plus 80 bps to 85 bps area.
On the second pair, with a March 14, 2027 maturity date, the issuer sold $350 million of floating-rate notes with a coupon based on 97 bps over SOFR and $1 billion of 2.552% notes with a spread of 83 bps over Treasuries. The fixed-rate notes were talked in the 100 bps to 105 bps area over Treasuries.
The bank also sold a 10-year tranche for $1.25 billion of 3.784% tier 2 subordinated notes. The spread came at Treasuries plus 195 bps, 25 bps low to talk.
Commonwealth Bank of Australia, BofA Securities, Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC served as bookrunners.
The financial services company is based in Sydney, Australia.
| Issuer: | Commonwealth Bank of Australia
|
| Amount: | $4.5 billion
|
| Issue: | Notes
|
| Bookrunners: | Commonwealth Bank of Australia, BofA Securities, Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC
|
| Trade date: | March 4
|
|
|
| 2025 floaters
|
| Amount: | $650 million
|
| Issue: | Floating-rate notes
|
| Maturity: | March 14, 2025
|
| Coupon: | SOFR plus 74 bps
|
|
|
| 2025 fixed
|
| Amount: | $1.25 billion
|
| Issue: | Notes
|
| Maturity: | March 14, 2025
|
| Coupon: | 2.296%
|
| Spread: | Treasuries plus 63 bps
|
| Price talk: | Treasuries plus 80 bps to 85 bps area
|
|
|
| 2027 floaters
|
| Amount: | $350 million
|
| Issue: | Floating-rate notes
|
| Maturity: | March 14, 2027
|
| Coupon: | SOFR plus 97 bps
|
|
|
| 2027 fixed
|
| Amount: | $1 billion
|
| Issue: | Notes
|
| Maturity: | March 14, 2027
|
| Coupon: | 2.552%
|
| Spread: | Treasuries plus 83 bps
|
| Price talk: | Treasuries plus 100 bps to 105 bps area
|
|
|
| Tier 2 notes
|
| Amount: | $1.25 billion
|
| Issue: | Tier 2 subordinated notes
|
| Maturity: | March 14, 2032
|
| Coupon: | 3.784%
|
| Spread: | Treasuries plus 195 bps
|
| Price talk: | Treasuries plus 220 bps area
|
|
|
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