National Australia Bank is the latest bank to raise money from retail investors through hybrid securities, launching a $750 million issue on Tuesday. The deal was first revealed by The Australian Financial Review's Street Talk. NAB said it expected the hybrids to pay quarterly distributions at a margin of 4.95 to 5.1 per cent over the bank bill swap rate. Hybrid shares pay a set interest rate, which usually tracks the price of debt, but regulators have cautioned investors about the risks of the products. The securities will qualify as Tier 1 capital for NAB. It comes after ANZ said last week it would look to market hybrid securities to overseas investors, hoping to raise US$750 million, while Westpac also launched a $750 million offer in May. Six brokers will manage the deal, with NAB as lead manager alongside Deutsche Bank, Evans & Partners, JPMorgan, Morgans Financial and Westpac.
National Australia Bank (NAB) is set to raise $750m from retail investors through a hybrid securities issue. The bank will issue shares in its new Australian Securities Exchange (ASX) and the first of these are expected to be offered on Friday at an initial price of A$2.80.