National Australia Bank has today announced the launch of NAB Capital Notes 7, classed as Additional Tier 1 Capital.
The offer from NAB is expected to raise $1 billion, with the ability to raise more or less.
The margin will be determined under the Bookbuild and will not change for the term of NAB Capital Notes 7. The margin is expected to be in the range of 2.80% to 3.00% per annum. The distribution rate is equal to the BBSW plus this margin.
NAB Capital Notes 7 are convertible, subordinated notes that are scheduled to pay quarterly, floating rate, non-cumulative Distributions in cash subject to the satisfaction of certain conditions.
NAB Capital Notes 7 will mandatorily convert into Ordinary Shares on 17 June 2033 (subject to certain conditions), unless they are converted, redeemed or resold earlier.
Also read: BBSW – Behind The Scenes
The first optional conversion / redemption / resale date is 17 September 2030.
The offer consists of a broker firm offer for qualifying investors and an institutional offer.
NAB Capital Notes 7 are expected to trade on the ASX from 15 September 2023.
The net proceeds of the offer will be used for general corporate purposes. APRA has deemed that the notes qualify as Additional Tier 1 Capital for regulatory requirements.
The lead managers for the offer are ANZ, Bell Potter Securities, Commonwealth Bank of Australia, Morgan Stanley, Morgans Financial, NAB, Ord Minnett, Shaw & Partners, UBS, and Westpac Institutional Bank.
National Australia Bank recently announced a 3Q23 unaudited statutory net profit of $1.75 billion and a 5.8% cash earnings growth versus 3Q22.
