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 hybrid shares pay a set interest rate and will qualify as Tier 1 capital for the bank. The NAB's $750m issue comes after similar moves from ANZ and Westpac earlier this year.