Investor Enthusiasm Surges: Follow-Up on NAB Capital Notes 8

The current environment of low margins, persistent inflation, and unpredictable interest rates may have encouraged investor appetite for hybrids, despite these securities having some of the lowest margins since the implementation of the Basel III framework.

Following this successful capital note issuance, NAB disclosed its half-year results, showcasing a robust financial health with a Common Equity Tier 1 ratio of 12.21%.

The recent NAB Capital Note 8 issuance demonstrated significant market enthusiasm, achieving an oversubscribed order size with demands exceeding $2.8 billion, far surpassing the initial target of $750 million. This strong demand led to an increased issuance to $1.0 billion, a testament to strong appetite despite the narrow margin environment. The final price was set at 3mBBSW + 260 bps.

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