Commonwealth Bank is the second of the big banks to launch an issue of hybrid securities this year and, like ANZ last month, it will restrict distribution in line with new design and distribution obligations.

The offer of new tier 1 hybrid securities, CommBank PERLS XIV Capital Notes, aims to raise around A$750 million of capital with a margin of 275 to 300 basis points over the bank bill swap rate.

The transaction includes a reinvestment offer for eligible PERLS IX holders.

The bank said that under its DDO requirements, applications can only be made through a syndicate broker by investors who are classified as wholesale clients or retail clients who have received personal product advice.

Unlike previous PERLS offers, there is no direct offer. These conditions also apply to the reinvestment offer.

Indicative pricing on the offer is slightly higher than ANZ’s hybrid, which was launched offering a margin between 270 and 290 bps and was priced at 270 bps. The first call date for the CBA hybrid is June 2029, while ANZ’s is March 2029.