Lower funding costs have attracted Commonwealth Bank of Australia
(ASX:CBA) to the local market opening a tender to buy back three lines of government guaranteed funding valued at nearly $5 billion.
The transferable certificates of deposit cost the bank a fixed rate up to 5.75 per cent in coupons and a 0.7 per cent fee to the federal government for guaranteeing the bonds.
The news follows a $2 billion issue of three year covered bonds in the US market last week.
Commonwealth Bank generated a net profit of $7.1 billion in the 2012 financial year.
