InvestSMART

InvestSMART Hybrid Income Portfolio - Portfolio Adjustment

We're making some changes to the Hybrid Income Portfolio
By · 7 Mar 2018
Share this article
By ·
7 Mar 2018 · 1 min read
Share this article
comments Comments

CBA announced a new Tier 1 Hybrid this morning, to be known as “CommBank PERLS X Capital Notes”.

PERLS X will qualify as Tier 1 capital of the Group and the offer is expected to raise $750m, with the ability to raise more or less. They are expected to be quoted under the code CBAPG.

PERLS X are subordinated, unsecured notes, scheduled to pay floating rate distributions quarterly, which are expected to be fully franked. PERLS X have a Call Date of 15 April 2025 and will mandatorily Exchange into Ordinary Shares on 15 April 2027 (subject to certain conditions). PERLS X have an initial Face Value of A$100.

We’re selling our position in ANZPD as they screen as relatively expensive and we look to increase our cash holding to bid into the PERLS X deal. ANZPD is currently weighted at 1.93% of the portfolio.

Share this article
InvestSMART
InvestSMART
Keep on reading more articles from InvestSMART. See more articles
Join the conversation...
There are comments posted so far. Join the conversation, please login or Sign up.
Related Articles