Another FRN expected shortly from CIBC

A Canadian corporate issuing bonds into the Kangaroo market is not unusual; Toronto Dominion, the Provinces of Manitoba, Quebec and Ontario have all been regular issuers into the Australian bond market over the years. This time it is Canadian Imperial Bank of Commerce’s (CIBC) turn but unlike its fellow Canadian players in the Kangaroo market, it tends to issue covered bonds and usually ones which pay floating rates of interest. CIBC had $700 million worth of March 2016 FRNs mature recently and they are possibly back again for some sort of replacement funding. An investor update is expected to take place shortly and if it is a prelude to a debt capital raising they would probably hope to achieve pricing in the same vicinity as their last covered bond sale in June, which raised $300 million at BBSW + 65bps.