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Subordinated indebtedness
 12 Months Ended
Oct. 31, 2019
Text block [abstract]  
Subordinated indebtedness
Note  14
 
Subordinated indebtedness
 
The debt issues included in the table below are outstanding unsecured obligations of CIBC and its subsidiaries and are subordinated to the claims of depositors and other creditors as set out in their terms. Foreign currency denominated indebtedness funds foreign currency denominated assets (including our NIFOs). All redemptions are subject to regulatory approval.
Terms of subordinated indebtedness
 
$ millions, as at October 31
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
  
 
 
 
  
2018
 
 
 
 
 
 
 
Earliest date redeemable
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
Interest
rate %
 
 
Contractual
maturity date
 
 
At greater of
Canada Yield Price 
(1)
and par
 
 
At par
 
 
Denominated
in foreign
currency
 
 
Par
value
 
 
Carrying
value 
(2)
 
  
Par
value
 
  
Carrying
value 
(2)
 
 
5.75
 
(3)
 
 
 
July 11, 2024
 
(4)
 
 
 
 
 
 
 
 
 
 
 
TT$175 million
 
 
$
34
 
 
$
34
 
  
$
34
 
  
$
34
 
 
3.00
 
(5)(6)
 
 
 
October 28, 2024
 
 
 
 
 
 
 
October 28, 2019
 (7)
 
 
 
 
 
 
 
–
 
 
 
–
 
  
 
1,000
 
  
 
986
 
 
3.42
 
(6)(8)
 
 
 
January 26, 2026
 
 
 
 
 
 
 
January 26, 2021
 
 
 
 
 
 
 
1,000
 
 
 
991
 
  
 
1,000
 
  
 
966
 
 
3.45
 
(6)
(9)
 
 
 
April 4, 2028
 
 
 
 
 
 
 
April 4, 2023
 
 
 
 
 
 
 
1,500
 
 
 
1,533
 
  
 
1,500
 
  
 
1,479
 
 
8.70
 
 
 
May 25, 2029
 
(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25
 
 
 
40
 
  
 
25
 
  
 
38
 
 
2.95
 
(6)
(10)
 
 
 
June 19, 2029
 
 
 
 
 
 
 
June 19, 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,500
 
 
 
1,494
 
  
 
–
 
  
 
–
 
 
11.60
 
 
 
January 7, 2031
 
 
 
January 7, 1996
 
 
 
 
 
 
 
 
 
 
 
200
 
 
 
200
 
  
 
200
 
  
 
178
 
 
10.80
 
 
 
May 15, 2031
 
 
 
May 15, 2021
 
 
 
 
 
 
 
 
 
 
 
150
 
 
 
149
 
  
 
150
 
  
 
132
 
 
8.70
 
 
 
May 25, 2032
 
(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25
 
 
 
42
 
  
 
25
 
  
 
39
 
 
8.70
 
 
 
May 25, 2033
 
(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25
 
 
 
44
 
  
 
25
 
  
 
40
 
 
8.70
 
 
 
May 25, 2035
 
(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25
 
 
 
46
 
  
 
25
 
  
 
42
 
 
Floating
 
(11)
 
 
 
July 31, 2084
 
 
 
 
 
 
 
July 27, 1990
 
 
 
US$65 million
 
(12)
 
 
 
85
 
 
 
85
 
  
 
86
 
  
 
86
 
 
Floating 
(13)
 
 
 
August 31, 2085
 
 
 
 
 
 
 
August 20, 1991
 
 
 
US$17 million
 
 
 
23
 
 
 
23
 
  
 
23
 
  
 
23
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,592
 
 
 
4,681
 
  
 
4,093
 
  
 
4,043
 
 
Subordinated indebtedness sold short (held) for trading purposes
 
 
 
3
 
 
 
3
 
  
 
37
 
  
 
37
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
    4,595
 
 
$
    4,684
 
  
$
    4,130
 
  
$
    4,080
 
 
(1)
Canada Yield Price: a price calculated at the time of redemption to provide a yield to maturity equal to the yield of a Government of Canada bond of appropriate maturity plus a pre-determined spread
.
(2)
Carrying values of fixed-rate subordinated indebtedness notes reflect the impact of interest rate hedges in an effective hedge relationship.
(3)
Guaranteed Subordinated Term Notes in Trinidad and Tobago dollars issued on July 11, 2018 by FirstCaribbean International Bank (Trinidad & Tobago) Limited, a subsidiary of CIBC FirstCaribbean, and guaranteed on a subordinated basis by CIBC FirstCaribbean.
(4)
Not redeemable prior to maturity date.
(5)
Interest rate is fixed at the indicated rate until the earliest date redeemable at par by CIBC and, thereafter, at a rate of 1.19% above the three-month Canadian dollar bankers’ acceptance rate.
(
6
)
Debentures are also subject to a non-viability contingent capital (NVCC) provision, necessary for the Debentures to qualify as Tier 2 regulatory capital under Basel III. As such, the Debentures are automatically converted into common shares upon the occurrence of a Trigger Event as described in the capital adequacy guidelines. In such an event, the Debentures are convertible into a number of common shares, determined by dividing 150% of the par value plus accrued and unpaid interest by the average common share price (as defined in the relevant prospectus supplements) subject to a minimum price of $5.00 per share (subject to adjustment in certain events as defined in the relevant prospectus supplements).
(
7
)
On October 28, 2019
,
we redeemed all $1.0 billion of our 3.00% Debentures due October 28, 2024. In accordance with their terms, the Debentures were redeemed at 100% of their principal amount, plus accrued and unpaid interest thereon.
(
8
)
Interest rate is fixed at the indicated rate until the earliest date redeemable at par by CIBC and, thereafter, at a rate of 2.57% above the three-month Canadian dollar bankers’ acceptance rate.
(9)
Interest rate is fixed at the indicated rate until the earliest date redeemable at par by CIBC and, thereafter, at a rate of 1.00% above the three-month Canadian dollar bankers’ acceptance rate.
(10)
Interest rate is fixed at the indicated rate until the earliest date redeemable at par by CIBC and, thereafter, at a rate of 1.18% above the three-month Canadian dollar bankers’ acceptance rate.
(11)
Interest rate is based on the six-month US$ London Interbank Offered Rate (LIBOR) plus 0.25%.
(12)
US$1 million (2018: nil) of this issue was repurchased and cancelled during the year.
(13)
Interest rate is based on the six-month US$ LIBOR plus 0.125%.