NZ legislation to have no impact on CommBank PERLS
The recent introduction of legislation to the New Zealand Parliament proposing changes to the tax treatment of distributions paid on certain hybrid securities will not impact CommBank PERLS securities, according to the Commonwealth Bank of Australia (CBA).
The bank also confirmed that the legislation, as currently proposed, would not impact the distributions paid on CommBank PERLS securities and they would be expected to be fully franked.
According to the company, the implementation of the changes would not result in CBA seeking to redeem PERLS IX.
The proposed New Zealand legislation referred to hybrid mismatch arrangements including those arising from the issue of Additional Tier 1 regulatory capital by banks and financial institutions through overseas branches.
The changes would aim to respond to rules developed by the Organisation for Economic Co-operation and Development.
CommBank PERLS IX Capital Notes are perpetual, subordinated, unsecured notes, issued by CBA through its New Zealand branch.
AUTHOR
Oksana Patron
Recommended for you
Selfwealth has provided an update on the status of its scheme implementation deed with Bell Financial Group as well as whether rival bidder Svava remains in the picture.
Magellan Financial Group has reported its first half FY25 results while appointing a new chief financial officer and promoting Sophia Rahmani to chief executive.
Schroders Australia has launched two active ETFs and plans to further expand its listed range over the year ahead.
Platform Netwealth has reported its financial results for the first half of FY25, reporting an 80 per cent increase in net flows, with its CEO viewing a “huge opportunity” from private assets.
