Government Bonds 

Both Government and corporations view bonds as an effective method of raising capital. Investors are often attracted to these securities because they provide regular coupon payments for the life of the bond. The ability of Australian companies to raise capital via the bond market has increased substantially through the ongoing development of the financial markets. Minimum investment $500,000.

A successful bond issue requires the expertise of a highly effective and professional team. The Commonwealth Bank was ranked number one in the domestic issuance league tables for 2004* with 31 deals valued at $7 billion, 30% more deals than our nearest competitor. We have strong relationships with many issuers in the market across a range of ratings (from AAA down) and offer a range of fixed and floating rate Debt Securities.

Government Bonds are offered by Commonwealth Bank and are ideal for clients who are seeking a long-term stable investment. They are unconditionally guaranteed by the Australian Government as a means of raising capital.

Semi Government authorities also issue bonds. These are issued via State Governments rather than the Federal Government, and carry the credit-rating of the relevant state. This means Semi-Government bonds normally trade at a higher rate than Commonwealth Government bonds.

* INSTO Public Domestic Non-Government Bond League Table (including self-led deals) for the period 1 January 2004 to 31 December 2004.

Important information about advice
The information contained on this web page is made available only for persons who are wholesale clients as defined in the Corporations Act 2001.