This information is general in nature and may not be construed as advice

CBA has launched a subordinated note issue with the new CommBank PERLS XVI Capital Notes (CBAPM).  CBA is raising Tier 1 Capital to satisfy their regulatory capital requirements and maintain the diversity of their sources of funding.  This investment has the following characteristics:

• CBA PERLS XVI are perpetual, subordinated, unsecured convertible notes.
• CBA is expected to raise $750m, with the ability to raise more or less.
• The CBA PERLS XVI are expected to be quoted on the ASX under the code ‘CBAPM’.
• The price is $100 per share with the minimum application being 50 notes ($5,000).
• Distributions on CBA PERLS XVI are paid quarterly and are preferred, non-cumulative floating rate payments and are expected to be fully franked.
• The distribution payments will be based on a floating rate.  The rate will be calculated based on the 90-Day BBSW (Currently 3.90%) plus a margin to be determined by a book build.  This margin is expected to be in the range of 3.00%-3.20% per annum over the 90day BBSW.

This would equate to a grossed up annual return of 6.90% – 7.10% (4.83% fully franked at the lower rate)

• The first distribution is scheduled to be paid on 15th September 2023.
• The notes rank ahead of Ordinary Shares and equally with other preference shares, but behind all creditors of CBA.
• First Optional call date is 17^th June 2030 and scheduled mandatory exchange date is 17^th June 2033. 
• Bond Adviser has recommended investors subscribe to the offer. Please click on the link below:

https://gammawealthgroup.app.box.com/s/f4u65c475r9grtvkymx7so2c0tykl8je

• Further guidance on investing in bank hybrid securities can be found on ASIC’s Money Smart website.

https://moneysmart.gov.au/investments-paying-interest/hybrid-securities-and-notes

The prospectus for this issue can be found by clicking on the link below:

https://gammawealthgroup.app.box.com/s/uqrlyk2tzf47qtrm4ucgvcj5vmld4owf