CBA expands U.S. debt capital markets operations

SYDNEY, Feb 5 (Reuters) - Commonwealth Bank of Australia
Ltd (CBA.AX: Quote, Profile, Research, Stock Buzz) is expanding its U.S. debt capital markets
operations in New York with the appointment of two new
executives.

The move puts an end to the bank's five-year joint venture
with U.S. investment bank Merrill Lynch in the U.S.'s
traditional private placement market, the bank said.

"This is about the Commonwealth Bank Group taking control
of its own business in this area and having a stronger presence
in this very competitive market," said Ian Saines, head of
CBA's institutional banking and global markets.

Until now, CBA used to partner up with Merrill Lynch when a
local client was looking to raise funds in the U.S. private
market, known for its appetite for long-term paper. Both banks
would then share the fees from the U.S. bond sale.

Hilary Ward and Bill Stevenson will join CBA's private
placement desk in New York and report to Sydney-based Peter
Christie, executive manager, corporate securities origination.

Ward arrives from JPMorgan, while Stevenson was formerly
head of debt private placements at Wachovia Securities and also
worked for JPMorgan.

The U.S. private placement market has been a popular source
of funds for Australian corporations looking for long-dated
debt. In 2007, eight borrowers raised US$4 billion in this
market.

The private placement market is primarily targeted at
insurance companies which favour long-term assets.

Two Australian major banks have existing partnerships with
U.S. investment banks.

Westpac Institutional Bank and Bank of America have the
oldest joint venture which started in 2001.

ANZ Investment Bank and JPMorgan is the other alliance.
(Reporting by Cecile Lefort; Editing by James Thornhill)