Powered by MOMENTUM MEDIA
the adviser logo
Lender

NAB secures $3bn in capital

by Hannah Dowling4 minute read

The major bank has successfully secured $3 billion in capital from domestic and overseas investors in a share placement announced on Monday.

Earlier this week, National Australia Bank (NAB) announced that it would be facilitating a new $3.5-billion capital raise, consisting of a $3-billion fully underwritten institutional share placement plan and a non-underwritten share purchase plan targeting approximately $500 million.

The bank has announced that it has now successfully completed the share placement portion of its raise and will issue approximately 212 million new fully paid ordinary shares to domestic and offshore institutional investors.

According to NAB, eligible institutional shareholders who bid for an amount less than or equal to their “pro rata” share of the placement shares were allocated their full bid, with the balance of the placement shares allocated to existing shareholders.

Advertisement
Advertisement

Additionally, these placement shares will rank equally with existing NAB ordinary shares, but will “not be entitled” to the 2020 interim dividend.

These shares are expected to settle on Thursday, 30 April, and be issued and commence trading on ASX on Friday, 1 May.

SPP details

NAB has also released further details on its share purchase plan (SPP), which is being offered to “existing eligible shareholders”.

Eligible shareholders will be given the opportunity to apply for up to $30,000 of new fully paid NAB ordinary shares under the SPP, without incurring brokerage fees, commission fees or other transaction costs.

The SPP shares will also rank equally with NAB ordinary shares from their date of issue, noting that they will also not be entitled to the 2020 interim dividend and will be issued after the record date for the 2020 interim dividend.

Eligible shareholders in the SPP, who have a registered address and are a resident in Australia and New Zealand, will be registered as NAB shareholders at 7pm on Friday, 24 April (AEST). 

At the time of announcing the raise, NAB said it was aimed at strengthening the bank’s funding position in light of “the uncertain economic outlook due to the COVID-19 pandemic”.

“These actions are intended to provide NAB with sufficient capacity to continue supporting our customers through the challenging times ahead, as well as increasing NAB’s capital level to assist to manage through a range of possible scenarios, including a prolonged and severe economic downturn,” NAB said.  

NAB claimed that the offer is expected to increase the group’s common equity tier 1 capital ratio from 10.39 per cent (as at 31 March 2020) to 11.2 per cent.  

[Related: Mortgage slump adds to NAB’s earnings woes]

nab

Hannah Dowling

Hannah Dowling

AUTHOR

Hannah Dowling is a journalist for The Adviser and Mortgage Business.

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

Nathan dal Bol

Expanded Home Guarantee Scheme launches

More places have become available under the expanded Home Guarantee Scheme. The scheme currently comprises the First...

READ MORE
Murray Cowan

BMM expands SMSF loan product

Better Mortgage Management (BMM) has confirmed that it has expanded its Aspire Self Managed Super Fund (SMSF) loan...

READ MORE
Clayton Howes  CEO MME

MoneyMe completes inaugural term securitisation transaction

According to MoneyMe, the $200 million term securitisation was a private placement with “three major Australian...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more