Commonwealth Bank has announced the margin on its latest CBA PERLS IX (ASX code: CBAPF) offering and, as expected, it was at the bottom of the 3.90%-4.10% indicative range. When this margin is added to the current 3 month bank bill swap rate (BBSW) of 1.78%, investors can expect around 5.68% annualised, inclusive of franking credits, for the first quarter and thereafter if BBSW rates do not alter materially. BBSW is typically close to the RBA’s official cash rate which is currently 1.50%.
CBA said it had received strong demand from syndicate brokers and institutional investors and $1.45 billion worth of PERLS IX have been allocated under the broker firm offer. The offer will remain open to CBA security-holder applications until the closing date or until otherwise announced. There is no general offer open to the public.