National Australia Bank Limited (ASX:NAB) has launched a capital raising which comprises of a fully underwritten institutional share placement of $3 billion plus a non-underwritten Share Purchase Plan (SPP) to raise ~ $500 million.
The measures taken by National Australia Bank are to build capital via an equity raising & a cut in the interim dividend, because of the ambiguous economic stance as a result of COVID-19 disease. These actions would provide NAB with adequate capacity to continue assisting its customers through the challenging times ahead & improve its capital level to help in managing a range of possible scenarios which includes prolonged and severe economic downturn.
