An A+ rated high yielding investment in Commonwealth Bank
Please find information for the CBA PERLS V offering below. Funds will be required by 28th September under a broker firm offer.
2.5% premium to the issue price
An analysis based on other hybrids in the market last week showed that ANZPB was currently trading at a spread of 285bps (with a similar maturity profile and same S&P credit rating of A+). We feel that the market can realistically value PERLS V at $205, a 2.5% premium to the issue price. In addition to this Perls V shareholders receive a 1% discount to the CBA share price on conversion.
- Broker firm offer – Our ability to offer clients access through our broker firm offer means investors have a much greater chance of achieving their desired allocation than investing through the general offer
- Limited Offer – The offer is to raise approximately $900m, with the ability to raise more or less. the shares will be traded on the ASX and have an initial conversion date of 15th October 2014
- Income – PERLS V entitles holders to quarterly distributions, expected to be fully franked
- High level of income – The distribution rate is 3.40% over the 90 day Bank Bill Swap Rate (3.46% as of 2nd September) for a current rate of 6.86%
- Highly rated – A+ S&P rating expected upon listing
- Minimum investment – $5,000
- Issue Price – $200