Australia's CBA announces $3.7 bln fully underwritten rights issue

August 11, 2015 10:28 PM

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SYDNEY Aug 12 Commonwealth Bank of Australia unveiled a A$5 billion ($3.65 billion) rights issue on Wednesday as its annual profit met expectations, completing a major round of fundraising by Australia's "Big Four" lenders amid fears of a house price bubble.

CBA, the country's No. 2 lender by assets, announced a fully underwritten 1-for-23 rights issue at an offer price of A$71.50, a 12.9 percent discount to its last trading price. This brings the total funds raised by Australia's major banks since May to $A17 billion.

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