NAB in $2 billion capital raising to cover DRP shortfall
National Australia Bank (NAB) is to take part in $2 billion institutional share placement to cover its next two dividend retirement plan (DRP) shortfalls.
The institutional placement has been underwritten by Goldman Sachs JB Were, Merrill Lynch, and the Australian branch of UBS AG.
The group’s statement to the Australian Securities Exchange (ASX) said “more favourable conditions have allowed NAB to accelerate its capital management plans”.
NAB said at the completion of the placement, it will not proceed with its underwrite of the DRP for the 2008 final dividend.
NAB will also offer retail shareholders the chance to take part in a non-underwritten share purchase plan (SPP) at the institutional placement price. Shareholders will be able to subscribe to up to $10,000 of NAB ordinary shares. NAB will also reserve the right to scale back applications under the SPP if total demand exceeds $250 million. The SPP will take place on November 13.
The capital will result in NAB moving to a tier 1 ratio of 8 per cent.
Recommended for you
The financial advice sector has benefited from a net rise of 11 advisers this week, according to Wealth Data, while AMP Group reports losses as several advisers open their own licensees.
Praemium has updated on the progress of its integration with platform OneVue, which it acquired from Iress earlier this year.
ASIC leadership has waded into the political debate about Qantas flight upgrades, confirming its executives hold membership of the Chairman’s Lounge but denying it affects their regulatory ability.
Perth advisory firm Capital Partners Private Wealth Advisers has announced a new managing director to take over from David Andrew as he steps down after 25 years.