National Australia Bank upsizes convertible preference share offer to at least A$1.5 billion

By Rebecca Melvin

New York, Nov. 19 - National Australia Bank Ltd. upsized its offering of floating-rate noncumulative convertible preference shares II to at least A$1.5 billion from A$750 million, and the margin was set at 325 basis points over the Bank Bill Rate, which was the tight end of talk, according to a press release.

The margin was talked at 325 bps to 340 bps.

The final size of the offer may be increased further subject to applications received, according to the release.

The $100-par shares (BBB/) are Basel III compliant and will qualify as additional tier I capital.

The dividend will be payable quarterly.

The shares will be listed on the Australian stock exchange and are mandatorily redeemable into ordinary shares on Dec. 19, 2022 or if an acquisition event occurs.

Proceeds will be used for general corporate purposes.

Melbourne-based National Australia Bank is the nation's largest lender.

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