Major bank prices $800m debt issue

In a trading update to the ASX on Wednesday, the bank announced that it had priced $150 million of 10-year fixed rate subordinated notes under its Medium Term Note program (MTN).

It also priced $650 million of 10-year floating rate subordinated notes under its MTN.

The subordinated MTNs will convert into “fully paid ordinary shares” of the bank if APRA deems them non-viable, the trading update said.

It comes after NAB successfully raised nearly $1.5 billion in capital in finalising its Capital Notes 2 offer in July.

In a statement to investors at the time, 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.

[Related: NAB announces business restructure]