EUR600M Subordinated Note Iss
May 29 2003 - 4:33AM
UK Regulatory
RNS Number:6644L
National Australia Bank Ld
29 May 2003
ASX Announcement
Melbourne - Thursday, 29 May 2003
National's Euro600 million subordinated note issue
On Friday, 23 May 2003, the National launched a fixed/floating 12 year, non call
7 year lower tier 2 subordinated euro medium term note issue on the following
terms:
Amount: Euro600 million
Lead Managers: UBS Warburg & Deutsche Bank
Payment Date: 4 June 2003
Maturity Date: 4 June 2015 (callable in 2010)
Benchmark: Bund 5.375% due January 2010
Re-off spread: Benchmark plus 65.7bps
Coupon: 3.875% annual / EURIBOR plus 49bps
Step up to EURIBOR plus 99bps in year 7 if
not called
Issue Rating: AA-/A1 (Subordinated)
Re-offer/Issue Price: 99.879
Comment
The proceeds of the issue will be used in the National's Australian balance
sheet for general banking purposes. The 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 National successfully tapped into a new investor base with this inaugural
fixed rate Euro transaction. The Notes were sold predominantly to fund managers,
insurance companies and pension funds (80%) throughout Europe (73%), U.K. (19%)
and Asia (8%.)
Strong demand for highly rated subordinated debt led the issue to be
oversubscribed at EUR760 million and a quality book of EUR600 million was
ultimately built with 63 investors. The National took advantage of strong market
conditions and its AA-/A1 subordinated rating and priced competitively at a
re-offer of EURIBOR plus 49bp.
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
This information is provided by RNS
The company news service from the London Stock Exchange
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