BNZ Income Securities, an indirectly owned subsidiary of National Australia Bank, announced an initiative to raise up to NZ$350 million through Tier 1 hybrid securities, as part of an ongoing capital management program.
The prospectus to be lodged will deliver innovative Tier 1 hybrid securities comprised of perpetual non-cumulative shares for BNZ and NAB. The proceeds, which total $350 million, from the proposed Tier 1 issue will, through the offer structure, be used by BNZ for general corporate purposes.
According to NAB, this proposed offer is consistent with the National’s objective of efficient capital management and is part of National’s ongoing capital management program.
The offer will be made to retail and wholesale investors in New Zealand only.
In other news, the executive director and CEO, NAB, Ahmed Fahour, has had his employment contract extended for the one year to August 30, 2009.
The terms of the employment agreement entered into in 2004 between Fahour and the National contemplates an extension of one year provided both parties agree at least six months prior to the end of the original four-year contract term.
