National Australia Bank (ASX:NAB) said it will issue $1 billion in fixed-reset subordinated notes due June 2037 under its $100 billion global medium-term note program, according to a Thursday Australian bourse filing.
The bank said the notes will convert into fully paid ordinary shares if the Australian Prudential Regulation Authority determines conversion is necessary on the grounds that the bank would otherwise become non-viable.
The maximum conversion number is 46,572.28 ordinary shares per subordinated note, with a denomination of $250,000, based on an issue-date volume-weighted average price of $26.84, it added.
The bank's shares fell almost 2% in recent Thursday trade.