Australia's CBA to sell Brazil real uridashi bond

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SYDNEY, July 31 (Reuters) - Commonwealth Bank of Australia
(CBA.AX), the nation's second-biggest lender by assets, said it
is selling a Brazilian real-denominated uridashi bond to meet
demand from Japanese retail investors seeking higher investment
returns.

Uridashi bonds are foreign curency bonds sold to Japanese
household investors, usually high net-worth individuals.

Brazilian real uridashi bonds offer a much higher coupon
than other popular currencies such as the New Zealand and
Australian dollars, which typically pay coupons around 6
percent.

CBA's real uridashi bond will pay 10 percent until it
matures in 2011.

Japanese investors have favoured South African rand, the
Australian and New Zealand dollar bonds for several years,
seeking higher yields after being starved of returns from very
low domestic interest rates.

CBA's new uridashi bond, its second such issue to date,
follows the International Finance Corporation (IFC), the World
Bank's private sector lender, which has three Brazilian real
uridashi on offer.

For the list of uridashi bonds, see [ID:nT26765].
(Reporting by Cecile Lefort)