National Australia Bank says it will raise about $750 million to refinance debt, as it seeks to meet toughened capital requirements.
NAB said on Monday that once issued, the capital notes would qualify as additional Tier 1 capital for the group.
NAB’s capital levels have come under pressure because of the $2.07 billion it had to pay out to compensate aggrieved customers after an inquiry last year revealed widespread misconduct in the financial sector.
The country’s third-largest lender also launched the resale of capital notes worth $750 million.
Last week, the lender posted first-quarter profit of $1.65 billion, little changed from a year earlier