NAB has announced that the Capital Notes 3 Offer has been increased to at least $1.65 Billion (from $750m) and has set the margin at 4%. With the 90 day bank bill rate at 1.98%, the estimated initial yield is 5.98%. The Offer is being made under the Broker firm and Institutional Offers. The final size of the Offer may be increased through the re-investment and current NAB Security-holders Offers.
There is no general public Offer.
Interestingly, the AFR reports that the $70 Billion UniSuper Fund picked up around $200 million of the Notes with a monster bid. Prior to this new Capital Note 3 offer, long dated major bank hybrids were trading at about a 5.75% yield. NAB has offered another 0.25% yield in an effort to not appear to be too clever, after having lost its Chairman and CEO after a somewhat clumsy appearance at the Royal Commission.
As Traderscircle placed a bid into the firm Broker Offer, if you are interested in participating, please contact your adviser.