Mallesons is acting on the Commonwealth Bank of Australia’s (CBA) $500 million inaugural retail bond issue. The offer sets a standard for disclosure to investors, and serves as a welcome boost to Australia’s retail bond market.
The offer is intended to assist the bank in diversifying its funding sources.
The CommBank Retail Bonds are five year, unsubordinated and unsecured bonds that will pay a floating interest rate on a quarterly basis.
The Mallesons team, led by Partners Rowan Russell and Shannon Finch, advised CBA. The team also included Partners David Eliakim and David Wood, and Solicitors Scott Holmes and Ada Ko.
Ms Finch said, “It’s a landmark transaction in the retail bonds market, with CBA taking a lead in testing the retail market and setting a standard for disclosure to investors. We believe that this sort of initiative from major Australian retail banks is key to supporting the development of an active retail bonds market in Australia”.
The issue has been seen as a very positive boost for the Australian retail bond market.
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