SYDNEY, May 31 (Reuters) - National Australia Bank NAB.AX , the country's No.1 lender, on Tuesday said it will raise around A$750 million ($539 million) through hybrid notes, following rival Westpac's WBC.AX A$1.45 billion Tier-I issue last week.
The notes, typically targeting retail investors, are eligible for additional Tier-1 capital to meet regulatory requirements to strengthen the bank's finances.
The notes can be converted on July 7, 2022 or will be mandatorily converted into ordinary shares on July 8, 2024, NAB said in a statement to the stock exchange.
The notes are expected to pay a margin of 495 basis points to 510 basis points over the bank bill swap rate. This would be equivalent to about 7 percent, the bank added.
The margin will be announced on June 8.
NAB, Deutsche Bank (DE:DBKGn), Evans & Partners, JP Morgan, Morgans and Westpac are joining leading the offer. ($1 = 1.3914 Australian dollars)