Hybrid capital plans for CBA

Commonwealth Bank will plan to sell new hybrid capital today, Reuters reported. CBA will publish its full-year results this morning. It isn't clear how much capital CBA plans to raise.

In late April CBA said it was sounding out the market about a hybrid debt issue of at least $500 million in an offer to retail and institutional investors. The bank did not proceed, however.

In March this year CBA redeemed $500 million in PERLS II securities sold in December 2003.

CBA sold €1 billion of ten-year subordinated debt two weeks ago, that counts as lower tier two capital under APRA rules. That was the first such subordinated debt issue by one of the major banks in more than a year.