Commonwealth Bank of Australia has launched a new Tier 1 hybrid, CommBank PERLS XI Capital Notes. As with several other series of PERLS notes issued by CBA since 2012, funds raised by this offer will qualify as Tier 1 capital of CBA. The new instruments are subordinated, unsecured notes, expected to pay distributions quarterly. The offer papers indicate distributions will be fully franked, paying a floating rate of 3.70 to 3.90 per cent over the 90-day bank bill swap rate. The final rate will be set by a bookbuild, which gets underway on 8 November.The PERLS XI offer is set to raise A$750 million, although CBA has leeway to move in either direction. PERLS XI are expected to be quoted on ASX under the trading code CBAPH.This series is the second Tier 1 hybrid series to be offered by CBA this year, after its PERLS X offer in March, and will become the sixth to be Basel III compliant, and therefore eligible to be counted as additional Tier 1 capital. The PERLS X issue was expected to rise $750 million, and closed at $1.365 billion.And while the ASX announcement indicated that the net proceeds of the offer will be used to fund CBA's business, it mentions a reinvestment deal for eligible PERLS VI holders. That series closed on 5 October 2012 and the notes are coming up to their first optional call date on 15 December. Thus it's likely that some of the funds raised by PERLS XI will be allocated to mopping up the remainder of the initial $2 billion PERLS VI notes.Those notes, however, were issued at a similar margin to that contemplated for the new PERLS XI issue, so it will be instructive to see how many investors, in effect, choose to roll over their holdings for a few more years. CBA is the arranger and a joint lead manager to the offer. ANZ Securities, Morgan Stanley Securities Australia, Morgans Financial and Westpac Institutional Bank have also been appointed as joint lead managers to the offer, as they were with PERLS X.Co-managers to the offer include two of the same firms as for PERLS X: Crestone Wealth Management and Ord Minnett, along with Bell Potter Securities, Evans Dixon Corporate and Macquarie Equities.CBA intends to limit investment in the PERLS XI to existing shareholders and holders of its previous hybrid issues, from PERLS VI onwards. "There will be no customer or general offer for PERLS XI," the ASX announcement stated.