Commonwealth Bank of Australia raises $794 million worth of debt

(Reuters) – Commonwealth Bank of Australia on Wednesday announced the issuance of A$1.25 billion ($794.38 million) worth of subordinated notes.

The issue of subordinated securities will not have a material impact on its financial position, the country’s largest lender said.

The bank is issuing A$550 million worth of subordinated fixed to floating rate securities and A$700 million worth of subordinated floating rate securities, both due in a decade.

“The subordinated securities potentially exchange into fully paid ordinary shares of CBA if a non-viability trigger event occurs,” the bank said.

The securities were issued pursuant to its local currency debt program, it added.

($1 = 1.5736 Australian dollars)

(Reporting by Sameer Manekar in Bengaluru; Editing by Shailesh Kuber and Devika Syamnath)