UPDATE 1-CIBC says to redeem debentures early

TORONTO Aug 27 (Reuters) - Canadian Imperial Bank of Commerce (CM.TO), Canada's fifth-biggest bank, said on Thursday it would redeem C$500 million ($458 million) of 4.5 percent debentures early.

The bank said it would redeem the debentures at 100 percent of their principal amount on Oct. 15, ahead of the October 2014 due date, as per common practice.

"The redemption will be financed out of the general corporate funds of CIBC," the bank said in a statement.

CIBC reported a lower-than-expected quarterly profit on Wednesday as it set aside more money to cover bad loans.

Banks have been increasing their loan loss provisions as the global economy slumps and consumers and businesses struggle to repay debts. Provisions are expected to stay higher for the next few quarters.

($1=$1.10 Canadian) (Reporting by Pav Jordan; editing by Rob Wilson)