(Australia) National Australia Bank has announced it will issue STG400 million (A$972.8 million) in Tier One Trust preferred securities.The security will carry a coupon of 5.62 percent, a figure that is 93 basis points above the benchmark security in the UK.
The issue has been increased by 33 percent from an original target of STG300 million because of “attractive pricing”, the bank said.
“An issue of Tier 1 capital is consistent with the National’s strategy of maintaining an efficient capital structure through active capital management. The proceeds from the Tier 1issue will be used by the National’s London Branch for operational banking purposes,” NAB said.