CBA bond issue boosts Aussie banks' funding options

Sydney

COMMONWEALTH Bank of Australia (CBA) has raised US$1.25 billion in 30-year subordinated debt in the United States in a successful auction that fund managers said on Thursday could encourage other Australian banks to follow suit.

Australia's biggest bank by market capitalisation attracted three times the amount it wanted to raise, a sign offshore investors are not too concerned about a money-laundering lawsuit against CBA and a looming government enquiry into the country's banking sector.