11 Nov 2008

NAB raises $A3b through sale of shares

12:48 pm on 11 November 2008

National Australia Bank has raised $A3 billion after selling shares to institutions.

The owner of the Bank of New Zealand was looking for $A2 billion to help strengthen its balance sheet to fund growth of its existing operations.

Institutions paid $A20 per share.

The issue was underwritten by Goldman Sachs JBWere, Merrill Lynch and an Australian arm of UBS.

Separately, the international ratings agency Standard & Poor's has upgraded NAB's outlook and affirmed its Double-A rating.

Analysts say the growing risk of a global recession will force Australian banks to restructure their businesses and raise more capital.

A number of high profile failures among Australian companies such as Allco and ABC Learning have also added to fundraising pressures at major banks.