The Commonwealth Bank of Australia (CBA) has raised $1.5 billion from institutional investors in its latest hybrid offer.

CBA says it has completed the institutional bookbuild for the tier 1 hybrid offer amid strong demand from brokers.

The bank has allocated $1.5 billion of the hybrids, with the margin set at 3.8 per cent.

“The group is very pleased with the strong support from investors for the offer, particularly as PERLS VI will be the first Basel III compliant tier 1 hybrid issued by an Australian bank,” chief financial officer David Craig said in a statement on Wednesday.

CBA said that while it would continue to accept applications under the reinvestment, securityholder and customer offers, plans for a general offer had been abandoned.

The bank launched PERLS VI as a replacement for the $1.46 billion Perls IV issue, which was due to convert into ordinary equity in late October.