March 6, 2018 / 10:42 PM / 10 days ago

UPDATE 1-Australia's Commonwealth Bank issues debt to raise about $586.7 mln

(Adds details on notes issue, details on Westpac’s issuance last month)

March 7 (Reuters) - Commonwealth Bank of Australia (CBA) said that it expects to raise about A$750 million ($587 million) through an issue of hybrid capital notes on Wednesday, bearing an expected margin of 3.4 percent to 3.6 percent above the prevalent bank bill rate.

The bank said in a statement that the ‘PERLS X’ Capital notes would have an initial face value of A$100 and would exchange into ordinary shares of the company by the middle of April 2027.

The notes are to be listed on the Australian Securities Exchange.

CBA, Australia’s biggest bank by market value, said proceeds from the capital-raising program would go toward funding the company’s business.

CBA’s issue follows Westpac Banking Corp’s announcement last month that it would issue debt to raise a similar amount.

The margin on those notes was expected to be between 3.20 percent and 3.40 percent per annum.

$1 = 1.2783 Australian dollars Reporting By Rushil Dutta in Bengaluru; Additional reporting by Christina Martin; Editing by Hugh Lawson and Peter Szekely

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