National Australia Bank (ASX:NAB) has announced the issuance of $1.5 billion in subordinated medium-term notes. These notes, issued under NAB’s domestic debt issuance program, are set to mature in July 2040. National Australia Bank provides a range of banking and financial services to individuals and businesses. It is one of Australia’s largest financial institutions, serving millions of customers.
The notes carry a provision for conversion into ordinary shares if the Australian Prudential Regulation Authority (APRA) deems it necessary due to non-viability. The conversion rate is capped at 129.2658 shares for each $1000 note, calculated using a volume-weighted average price of $38.68.
NAB has stated that this issuance will not significantly affect its financial standing. Furthermore, the bank clarified that any potential conversion of the notes into shares would ultimately bolster shareholders’ equity.
