National Australia Bank launches second capital raising in a month

National Australia Bank said on Monday it was looking to raise A$1.4 billion ($959.70 million) through the issue of medium-term notes, its second capital raising in a month, to help beef up its capital ahead of a regulatory deadline.

Of the total issue, A$1.18 billion of notes will carry a floating rate, and A$225 million will carry a fixed rate. Both sets of notes will be due in November 2031.

Australia's biggest banks have been eyeing ways to raise capital ahead of a new core capital ratio requirement of 10.5% by Jan. 1.

NAB finds itself in a difficult spot, as its the only one of the Big Four banks that is below that level, currently sitting at 10.38%.

The country's third largest lender earlier this month announced a $1.55 capital raising via a partially underwritten dividend reinvestment plan.

Westpac Banking Corp also this month launched a A$2.5 billion capital issue, the largest raising by one of the Big Four since 2015.

Commonwealth Bank of Australia, the country's top lender, announced a A$2.5 billion notes issue in September. - Reuters

source https://www.thesundaily.my/business/national-australia-bank-launches-second-capital-raising-in-a-month-BY1616470