CommBank’s PERLS XII hybrid issue will be gobbled up

Co-founder of the Switzer Report
Print This Post A A A

Investors desperate for fixed interest style investments with a little bit of yield will gobble up CommBank’s new hybrid securities issue, PERLS XII. Set to pay a fixed margin of 3% over the 90-day bank bill rate and an offer size in excess of $750 million, the final terms of the issue will be announced after a bookbuild on Wednesday.

Historically, a margin of 3% would be considered to be on the light side, particularly for an issue with a term of almost 7.5 years to the call date (see table below of CommBank’s PERLs issues over the last 7 years).

Also from this edition