NAB announce share placement to raise $2.75b
Wednesday July 22, 2009
The National Australia Bank has announced its plans for a large share placement to raise $2.75 billion, citing needs for funds for future growth opportunities. The move follows its last share placement and capital raising venture in November 2008 whereby the bank raised $3 billion and its June quarter cash earnings announcement of $900 million.
As Australia's top lender, the National Australia Bank has been reporting fairly industry standard results with asset quality diminishing across the banking sector and banks now taking action to increase their revenue, strengthen their balance sheet and future projected acquisitions. The National Australia Bank's bad loan rate has increased from 138 basis points to 177 basis points in the space of one quarter leading to the end of June.
The banks shares will be priced at a minimum of $21.20 based on the NAB's last trading price of $23.58 and broken into fully underwritten institutional placement shares ($2 billion) and non-underwritten share purchase plan ($750 million). National Australian Bank shares have halted trading since the announcement with trading expected to resume on Thursday after the outcome of the institutional placement is known.
The National Australia Bank share placement follows the previously announced ANZ Bank $2.2 billion share purchase plan, publicly announced several weeks ago.
Are you getting the most from your banks? Use our compare tables and see which lender can work best for you.
News Archive
2012
2010
2009
- December [5]
- November [8]
- October [10]
- September [9]
- August [14]
- July [10]
- June [9]
- May [3]
- April [9]
- March [9]
- February [13]
- January [15]
2008
- December [39]
- November [48]
- October [78]
- September [45]
- August [39]
- July [62]
- June [30]
- May [42]
- April [30]
- March [50]
- February [25]
- January [33]