NAB announces half billion equity raising
The National Australia Bank (NAB) has announced a subordinated notes offer to shareholders in order to strengthen its capital position, with an intention to raise around $500 million.
The offer will be open from 21 May to 8 June 2012 (for security holders and general offers) and 15 June for broking firms and institutional offers. The minimum investment is $5,000, and in $1,000 multiples thereafter, NAB announced in a statement to the Australian Securities Exchange (ASX).
"The offer provides investors with the option of a simple, attractive, yield-based subordinated debt investment in a major bank which can diversify an investment portfolio and provide the benefit of a regular, quarterly interest payment," NAB group executive director of finance Mark Joiner said in a statement to the ASX announcing the offer.
The notes will pay a quarterly floating rate of interest, which is the sum of the bank bill rate plus a margin, which NAB said is expected to be between 2.75 per cent and 2.85 per cent.
The notes may be redeemed after five years and mature after 10 years, and may be traded prior to that on the ASX. NAB may redeem the notes after five years or on any interest date thereafter. There is no mechanism to trigger the notes into ordinary shares.
NAB cautioned that the notes are not insured or guaranteed, and in the event of a windup, subordinated debt falls behind other debt claims and investors could lose all monies invested.
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
