RNS Number:0458Q
National Australia Bank Ld
23 September 2003

                                                         Group Corporate Affairs

                                                 National Australia Bank Limited
                                                                 ABN 12004044937
                                                               500 Bourke Street
                                                       Melbourne  Victoria  3000
                                                                       Australia


                                                       Telephone: (03) 8641 3580
                                                      Facsimile:  (03) 8641 4925

ASX Announcement

National's Hybrid Tier 1 Capital Security issue

National Australia Bank today announced an issue of  GBP400 million Tier 1 Trust
Preferred Securities.  The securities carry a coupon of 5.62% which represents a
margin of 0.93% over the benchmark UK government security.  The perpetual
securities are callable on 17 December 2018 subject to the approval of APRA.
Based on this attractive pricing, the deal was increased by 33% from its
original GBP300m target.

An issue of Tier 1 capital is consistent with the National's strategy of
maintaining an efficient capital structure through active capital management.
The proceeds from the Tier 1 issue will be used by the National's London Branch
for operational banking purposes.



Melbourne, Tuesday, 23  September 2003


For further information, please contact:              Brandon Phillips
                                                      Group Manager Media
                                                      Group Corporate Affairs
                                                      (03) 8641 3857


This statement does not constitute, and may not be used for the purpose of, an
offer or invitation by any person to subscribe for or purchase any securities in
the United Kingdom or elsewhere.  The securities offered will not be registered
under the U.S. Securities Act of 1933 and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements.

Stabilisation/FSA - In connection with any issue and distribution of any trust
preferred securities, the National may appoint a person who may over-allot or
effect transactions with a view to supporting the market price of the trust
preferred securities at a level higher than that which might otherwise prevail
for a limited period.  However, there may be no obligation on the person
appointed to do so and such stabilising, if commenced, may be discontinued at
any time and must be brought to an end after a limited period.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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