Why is National Australia Bank (ASX:NAB) share price on investors’ radar today - Kalkine Media

June 06, 2022 02:05 PM AEST | By Bhawna Gupta
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Highlights

  • NAB’s shares are trading in red today.
  • The bank has launched its capital notes 6 offer to raise AU$1 billion from syndicate brokers and institutional investors.
  • The face value of each capital notes 6 is AU$100, with an AU$5,000 minimum commitment.

Australia’s top bank National Australia Bank Limited (ASX:NAB) shares were trading 1.05% lower at AU$30.95 each on the ASX at 12.15 PM AEST today.

ASX200 Index was also 0.34% down at 7,213.90 at 12.19 PM.

NAB to raise AU$1 billion capital

NAB has launched its capital notes 6 offer to raise AU$1 billion from syndicate brokers and institutional investors.

The corporation has set aside approximately AU$1 billion, with a projected annual margin of 3.15% to 3.35%. However, the ultimate amount to be raised will be determined by the number and value of applications submitted.

The face value of each capital notes 6 is AU$100, with an AUAU$5,000 minimum commitment.

In addition, the quarterly distribution rate [(bank bill rate + margin) x (tax rate)] will be determined.

Also Read: ANZ, CBA, NAB, WBC: How are ASX-listed ‘big four’ banks performing?

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Data Source- Company announcement dated 06 June 2022

The notes will convert into a variable number of NAB ordinary shares on 17 September 2032, unless they are exchanged sooner.

NAB's continuous funding and capital management plan includes issuing capital notes 6. The proceeds will most likely be used for general company and financial objectives.

The capital 6 notes will be closed on 30 June 2022. The notes are expected to trade the next day after settlement on July 7.

Source: © Amarosy | Megapixl.com

A recent development by NAB

Last week (1 June 2022), NAB announced that it had completed the acquisition of Citigroup’s Australian consumer business (Citigroup Consumer Business).

The acquisition will help NAB expand its personal banking business. The purchase of Citigroup Consumer Business will help NAB with unsecured lending and new technological investments.

NAB had agreed to buy Citigroup Consumer Business in August 2021, which included Citigroup's home loan portfolio, unsecured lending business, retail deposits company, and private wealth management business.

On the same day, NAB also announced the payment of an interim dividend. It is a fully franked payment with a total distribution of AU$0.73 per share. The dividend also features a DRP (dividend reinvestment plan) option, with a price of AU$31.35 per share.

Also Read: NAB (ASX:NAB) shares gain on Citigroup consumer business acquisition

Stock performance

NAB shares have gained over 5% YTD. In the last one year, the bank's shares have jumped more than 16%.

Financial is one of the worst-performing sectors today along with telecom, IT and A-REIT. Energy has been the best performing sector so far.


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