Commonwealth Bank of Australia (CBA) could return to its domestic market soon with its first public Australian dollar-denominated covered bond in over two years, having arranged an investor call this week in anticipation of a possible deal.

CBA said yesterday (Tuesday) it will hold an investor update call on Friday ahead of a potential Australian dollar covered bond.

CBA’s last benchmark Australian dollar covered bond issue came in January 2012, when it sold a A$3.5bn (Eu2.45bn) January 2017 dual tranche issue – comprising a A$2bn fixed rate tranche and a A$1.5bn floating rate note – that was the first domestic Australian covered bond. Its last public domestic issuance was in 2014, when it sold three 2024 issues of A$125m or less.

Since the big four Australian banks (ANZ, CBA, NAB and Westpac) joined the covered bond market they have focussed on international issuance. CBA has issued mainly in euros – this year having sold two euro benchmarks, including a dual tranche Eu1.25bn issue in January – but has also issued US dollar and sterling benchmarks.

The last benchmark Australian dollar covered bond was a A$350m issue for Suncorp-Metway on 16 August.