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National Australia Bank to sell A$750 mln 11.5-year sub debt

Published 08/02/2017, 09:44 am
Updated 08/02/2017, 09:50 am
© Reuters.  National Australia Bank to sell A$750 mln 11.5-year sub debt
NAB
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SYDNEY, Feb 8 (Reuters) - National Australia Bank Ltd NAB.AX (NAB), the country's No. 4 lender by market value, said on Wednesday it would raise around A$750 million ($572 million) to refinance debt.

The issue, to be listed on the Australian Stock Exchange, will mature on Sept. 20 2028 and is callable in Sept. 2023, according to the prospectus.

Price guidance is 220 to 230 basis points over the bank bill swap rate.

The final margin will be set on Feb. 15 with issuance on March 20. Trading on the ASX will start on 27 March.

NAB is arranger and joint lead manager with Commonwealth Bank of Australia, Morgans and Westpac.

The first call date is Sept. 20, 2023 while the maturity date is Sept. 20, 2028.

Earlier this week, NAB flagged the issue to shore up its capital position after reporting a slight fall in its Tier 1 capital ratio to 9.5 percent at Dec. 31, from 9.8 percent on Sept. 30.

Australian banks typically sell subordinated tier 2 notes to institutional investors and target retail investors for their Tier 1 securities, which rank lower than sub debt. ($1 = 1.3115 Australian dollars)

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