Herbert Smith Freehills Advises Joint Lead Managers on Commonwealth Bank of Australia’s A$1.18 billion PERLS XIII Issue

Herbert Smith Freehills is proud to have advised the Joint Lead Managers of the Commonwealth Bank of Australia’s (CBA) offer of CommBank PERLS XIII Capital Notes.

CBA is one of Australia’s leading providers of integrated financial services including retail, business and institutional banking, funds management, superannuation, insurance and broking services.

CommBank PERLS XIII 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 acted for the seven Joint Lead Managers, being Commonwealth Bank of Australia (Capital Markets Division) (who was also the sole Arranger), ANZ Securities Limited, Morgan Stanley Australia Securities Limited, Morgans Financial Limited, National Australia Bank Limited, Ord Minnett Limited and Westpac Institutional Bank.

The Herbert Smith Freehills team was led by partner Philippa Stone, supported by Senior Associate Michael Burrell and solicitor Joseph Swaysland.

Philippa Stone said, “We are delighted to have worked with the Joint Lead Managers on this offer. This transaction follows our recent role acting for the joint lead managers on the offer of Macquarie Group Capital Notes 5.”

CBA was advised by Allens.

This deal is another example of Herbert Smith Freehills’ market-leading work in bank hybrids. Other recent examples include, advising:

• The joint lead managers on Macquarie Bank Limited’s A$725 million offer of Macquarie Group Capital Notes 5;
• The joint lead managers on Macquarie Bank Limited’s A$641 million offer of Macquarie Bank Capital Notes 2;
• The joint lead managers on Westpac Banking Group’s A$1.72 billion offer of Westpac Capital Notes 7;
• The joint lead managers on MGL’s A$750 million offer of Macquarie Group Capital Notes 4;
• The joint lead managers on Westpac Banking Group’s A$1.42 billion offer of Westpac Capital Notes 6; and
• The joint lead managers on Australia and New Zealand Banking Group Limited’s A$1 billion offer of ANZ Capital Notes 5.