The Commonwealth Bank has announced a Tier 2 capital raise for its New-Zealand based subsidiary, ASB Bank, through the release of ASB Subordinated Notes 2.
ASB Bank intends to raise NZ$250 million through the offer, with the capacity to take on NZ$150 million in oversubscriptions, to “meet capital requirements and maintain the diversity of ASB’s sources and types of funding”, CBA said.
“The proceeds of the offer will be used solely for ASB’s general corporate purposes. The use of the money raised under the offer will not change depending on the total amount that is raised,” the bank said.
The offer, which is available to NZ-based retail investors as well as certain NZ and overseas institutional investors, opens on 3 November 2016, and will close on 25 November 2016, CBA said.
The notes have a ten year term, maturing on 15 December 2026, with payments made quarterly until maturation or the notes are converted in to CBA ordinary shares, which may happen should ASB or CBA “encounter severe financial difficulty”, CBA said.
ASB Subordinate Notes 2 are being offered with a face value of NZ$1.00, with a minimum investment of NZ$5000, and in multiples of NZ$1000 thereafter.
The government made the announcement this morning that more than $51 million would be given to pursue criminal prosecutions for financial mi...
An Australian real estate income fund targeting an 8 per cent return through commercial mortgages has raised more than $230 million for its...
Fixed income specialist Ardea Investment Management has received its first ‘recommended’ rating for its Real Outcome Fund from Lonsec....