COMMONWEALTH BANK PLANS 500 MLN DLR PAPER FACILITY
<The Commonwealth Bank of Australia>
said it was preparing a 500 mln dlr commercial paper facility
aimed at establishing a new Australian dollar denominated paper
market in Asia.
    Commonwealth senior manager Graham Hand told Reuters the
facility was the first in a program modelled on the U.S.
Commercial paper market.
    Hand said the bank was still putting together its dealing
panel and would begin discussing the facility with potential
customers in Hong Kong, Singapore and Tokyo next month. It
hoped to launch the facility soon afterwards, he said.
    The paper would be investor driven with the bank gauging
demand through the dealing panel which would also offer a
liquid secondary market, Hand said.
    For flexibility the bank would post yields daily to dealers
on an absolute rate basis providing a range of short term
maturities. The paper would be issued at a discount and
guaranteed by the Australian government, Hand said.
 REUTER
