Ashurst has advised the joint lead managers and underwrtiers on a A$5billion pro-rata accelerated institutional, tradeable retail entitlement offer (PAITREO) by Commonweath Bank of Australia (CBA).

CBA is conducting a 1 for 23 pro rata renounceable accelerated entitlement offer with rights trading to raise approximately $5 billion to be used in the ongoing funding of CBA's business to strengthen its regulatory capital position in the light of recent APRA statements.

CBA is offering entitlements pro rata to all eligible institutional shareholders and eligible retail shareholders which can be exercised to buy new ordinary shares (New Shares) at an offer price of $71.50 per New Share. This represents a 10.5% discount to the dividend adjusted closing price of Ordinary Shares on ASX on 11 August 2015.

Rights not taken up by institutional shareholders will be sold in the Institutional Bookbuild and the proceeds remitted to those institutional shareholders. Retail shareholders may sell their rights on market or if they do not exercise their rights, their rights will be sold in the Retail Bookbuild and the proceeds remitted to those retail shareholders who do not take up their rights or sell them on ASX.

The entitlement offer is managed by CBAE, Goldman Sachs, MS and UBS (joint lead managers). The entitlement offer is fully underwritten by MS and UBS.

The Ashurst team was led by corporate partner Sarah Dulhunty, who was assisted by senior associate Andrew Kim and lawyer Andrew Johnston.