The first Basel III-compliant Tier 1 hybrid bond to be
issued by an Australian bank acts as a regulatory test case on
Basel III implementation in the country.
The Commonwealth Bank of Australia’s (CBA)
Perpetual Exchangeable Resalable Listed Securities VI (PERLS
VI) will make clear how Australian Prudential Regulatory
rules on Basel III implementation apply.
minimum capital ratios and regulatory adjustments come into
force in Australia on 1 January 2013.
King & Wood Mallesons’ Sydney head Shannon
Finch, who advised joint lead arrangers CBA’s
Capital Markets Division and Morgan Stanley Australia
Securities, said the transaction should be a good starting
point for issuers to engage with Apra on Basel III
Basel III concerns: immediate non-viability
Recent hybrid issuances in Australia, such as...