NAB’s latest ASX-listed note offering has had its margin set at the lower end of the 2.20% to 2.30% indicative range. The margin on NAB Subordinated Notes II has been set at 2.20% and, when added to the current 90 day bank bill swap rate (BBSW) of 1.775%, investors will receive an initial 3.975% per annum. The actual amount of income investors receive over time is subject to changes in the BBSW rate each quarter, which tends to follow the official cash rate closely (see below).
NAB has announced the issue will raise at least $800 million “following strong demand”. Trading on the ASX will begin on 21 March 2017 and the first quarterly distribution will be paid on 20 June 2017 with the amount based on the 90 day BBSW rate on the first business day of each payment period.
