Commonwealth Bank of Australia Plans to Sell $3 Billion of Bonds
Commonwealth Bank of Australia plans to issue $3 billion of bonds in a two-part, U.S. dollar-denominated offering.
Australia’s biggest lender by market value may sell $1 billion of five-year notes to yield 90 basis points more than similar-maturity Treasuries and $2 billion of floating-rate securities due in three years that may yield 50 basis points more than the London interbank offered rate, according to a person with knowledge of the offering. The Sydney-based bank canceled a three-year portion of fixed-rate debt said the person, who asked not to be identified because terms aren’t set.
Citigroup Inc., CBA, JPMorgan Chase & Co. and Morgan Stanley will manage the offering, according to the person.
Libor, the rate at which banks say they can borrow from each other, was set today at 25 basis points.
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