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Freehills and Mallesons act on rare bond issue

Freehills and Mallesons act on rare bond issue

Freehills and Mallesons Stephen Jaques shared the honours on the first covered bond issue by a bank in Australia.The Canadian Imperial Bank of Commerce (CIBC) has priced $750 million of…

Freehills and Mallesons Stephen Jaques shared the honours on the first covered bond issue by a bank in Australia.

The Canadian Imperial Bank of Commerce (CIBC) has priced $750 million of three-year covered bonds, with Freehills acting as its legal advisor.

Partner Patrick Lowden led the Freehills team, with senior associate Liam Williams and solicitor Laura Cameron assisting.

"The positive reception to its issue of covered bonds is not only evidence of the desire of domestic entities to invest in highly rated liquid bonds, but also that the Australian debt capital markets continue to move in a positive direction," Lowden said.

Mallesons acted for the joint lead managers, which included the Hong Kong and Shanghai Banking Corporation Limited. Sydney based partners Philip Harvey and Greg Hammond led the Mallesons team.

The Business Spectator reported that such bonds are rare in Australia, because Australian banks are banned from initiating a covered bonds issue because they rank ahead of depositors for payment in the event that a bank fails.

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