RNS Number:3651I
National Australia Bank Ld
06 March 2003


                                                                                     Corporatre Fiinance

                                                                                     National Australia
                                                                                     Bank Limited
                                                                                     ABN 12004044937

                                                                                     500 Bourke Street
            ASX Announcement                                                         Melbourne
                                                                                     Victoria  3000
                                                                                     Australia

                                                                                     Telephone: (03) 8641 3358
                                                                                     Facsimile: (03) 9208 8768

Melbourne -Tuesday, 4 March 2003


National's US$300 million subordinated note issue



Last night the National launched a 10 year, non call 5 year subordinated euro
medium term note issue on the following terms:



Amount:          US$300 million

Lead managers:   Nomura International Plc & Royal Bank of Scotland

Payment date:     12 March 2003

Maturity: 12 March 2013 (callable in 2008)

Coupon:           USD LIBOR plus 50bp
                  Step up to USD LIBOR plus 100bp in year 5 if not called

Issue Rating:        AA/A1

Issue Price:         99.988%

Re-offer:            USD LIBOR plus 54bp

Comment:

The proceeds of the issue will be used in the National's Australian balance
sheet for general banking purposes.


This issue constitutes Tier 2 capital for the Group and replaces some of the
subordinated debt which has been called during the course of this financial
year.

The Notes were sold to a range institutional investors located in Europe and UK
(75%) and Asia, including China (25%).



For further information, please contact:

Ian McLean                                         Michael O'Neill
Head of Group Funding & Liquidity                  Head of Group Balance Sheet Management
(03) 8641 3358                                     (03) 8641-0021




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