National Australia Bank (NAB) today announced an offer of NAB Subordinated Notes 2, which are expected to be quoted on the ASX.

Each NAB Subordinated Note 2 will have a Face Value of $100 and an expected Margin in the range of 2.20% to 2.30% per annum over the three month Bank Bill Rate.

The Offer is expected to raise approximately $750 million, with the ability to raise more or less. Once issued, the NAB Subordinated Notes 2 will qualify as Tier 2 Capital for the Group. NAB will use the net proceeds of the Offer to refinance the NAB Subordinated Notes issued by NAB on 18 June 2012 (NSN) and for general corporate purposes.

Structure of the Offer

The Offer comprises:

• a Securityholder Offer (for all existing Australian registered holders of NAB’s Ordinary Shares as well as Australian registered holders of National Income Securities, NAB Subordinated Notes, NAB CPS, NAB CPS II, NAB Capital Notes or NAB Capital Notes 2, as at 7.00pm (Melbourne time) on 3 February 2017);
• a Reinvestment Offer (see further details below);
• a Broker Firm Offer; and
• an Institutional Offer by invitation.

 There is no general public offer.

For further information please see www.nabgroup.com.au