subscribe to our newsletter
NAB closes $1.5bn capital raising

NAB closes $1.5bn capital raising

National Australia Bank has finalised its Capital Notes 2 offer, raising nearly $1.5 billion in capital.

In a statement to investors, NAB said all valid applications had been accepted in full and that close to 15 million notes had been issued, each at a price of $100.

BNP Paribas received the greatest volume of notes – approximately 20 per cent of those issued – followed by HSBC Custody Nominees with 6 per cent.

NAB’s finalisation of the offer follows the similar success of Westpac last week, which announced it had raised $1.7 billion in capital through its own capital notes offer.

Meanwhile, ASX-listed lender DirectMoney recently announced it is undertaking a capital raising in order to boost its lending and marketing capability.

The company said in an ASX statement that it is offering eligible shareholders the opportunity to participate in a pro-rata non-renounceable offer of one new share for every two existing shares held at an issue price of 4.2 cents per new share, with the aim of raising up to $5.7 million.

“The company intends to apply the funds to support key business objectives and growth projects”, DirectMoney said.

Specifically, DirectMoney plans to use $2 million of the funding for “additional lending to approved loan applicants”, while $1.8 million will go towards “general working capital” and $1 million will serve as “available capital to use as collateral for proposed future loan sale transactions to major Australian financial institutions”.

Over the next 12 months, the lender also plans to put $300,000 towards the marketing of its Personal Loan Fund, and $250,000 will be set aside to cover the costs of BDM and broker support, as well as broker channel marketing.

DirectMoney said the remaining $400,000 from the capital raising will cover the costs of the offer.

[Related: NAB forms funding partnership with Centrepoint]

NAB closes $1.5bn capital raising
mortgagebusiness logo

Latest News

Affordability is often on the minds of the general public, and that, combined with rental opportunities, are reshaping the Australian dream ...

An increasing number of Australians are obtaining home loans from non-bank lenders, bypassing higher interest rates offered by traditional l...

The government has announced that Treasury secretary John Fraser will resign at the end of the month and will be replaced by Scott Morrison...

Promoted Stories

podcast

LATEST PODCAST: Broker commission changes, changes to low doc lending and the Deloitte mortgage report 2018

Do you expect access to credit to get harder this year?