CBA PERLS XI CAPITAL NOTES
| Minimum Investment | $10,000 |
| Expected Close | 17/12/2018 |
Capital Securities issued by Commonwealth Bank
Wealth Focus has secured access to an allocation of CommBank Perls 11 Capital Notes IPO. Investors looking to apply for an allocation will need to contact us on 1300 559 869.
CBA Perls XI Capital Notes
The latest fixed income hybrid has just been launched from Commonwealth Bank offering an indicative yield of 5.63%pa.
The increase in US rates has impacted the global cost of borrowing and are forecast to continue rising. Higher interest rates will likely present Investors with the dilemma of remaining in risk assets at a time that their valuations are being challenged, or fleeing to safe haven assets such as bonds offering sub-standard yields. Interest rate rises are a headwind to both alternatives.
Floating rate notes such as hybrids may provide a suitable alternative for those looking to avoid the volatility of equities and the headwind of interest rate rises.
With no general offer, investors are going to be lucky to source stock and we would suggest investors looking for an allocation, request stock sooner rather than later.
- Download a prospectus
- Download a fact sheet
- Download our analysis
- Webinar – An Introduction to Fixed Income
Call us on 1300 559 869 if you would like an allocation to CBA PERLS 11 or have an existing investment in CBA PERLS 6 (CBAPC) you would like to roll into the new issue.
Key Features
- Indicative floating yield of 5.63-5.83%pa – based on current 90 BBSW of 1.93% and bookbuild margin range of 3.7-3.9%.
- Option to redeem at year 5 with scheduled conversion at year 7 -CBA has the option to convert in April 2024 or on any subsequent dividend payment date.
- Ordinary dividend restrictions -applies on the non payment of CBAPH dividends
- Automatic conversion under the Capital Trigger Event and Non-Viability
- Redemption highly likely in 5.5 years -although CBAPH has a 7.5 year maturity, we feel it is likely CBA will redeem/convert at the first call date in April 2024. Major incentives for redemption/conversion include the potential for reputational damage and risk of credit rating downgrade, leading to an increased cost of funding on future debt issues.
- Minimum investment – $10,000 (this is a Wealth Focus minimum)
- Issue Price – $100
Find out more
If you would like further information on CBA Perls 11 Offer, please click on the links below:
- Fact sheet
- Prospectus
- Presentation
- Our analysis
- Research
- View our online webinar – An Introduction to Fixed Income
Please call us on 1300 559 869 to ask us to secure an allocation.
Best regards
Sulieman Ravell
Wealth Focus Pty Ltd
What do we get paid?
Wealth Focus will receive a payment of up to 1% plus GST of the amount invested. This commission is paid by the product issuer and is NOT an additional charge to the investor.
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