(Adds distribution details)
SYDNEY, May 21 (Reuters) - National Australia Bank (NAB.AX)
(NAB) received more than 1.3 billion pounds ($2.05 billion)
worth of bids at the clearing price for its 500 million pound
five-year bond issue, a joint lead said on Thursday.
NAB, the nation's largest bank, paid a margin of 285 basis
points (bps) over Gilt bonds, a margin significantly lower than
the 300 bps expected initially following strong demand.
Around 160 investors participated in the offer, with half
of the bonds ending up with fund managers. Banks took 25
percent.
UK buyers snapped more than half of the bonds with 55
percent of the total, followed by Swiss buyers with 11 percent.
The balance was sold in other countries.
NAB's bond is the first international benchmark issue sold
by an Australian bank without a government bond guarantee since
August 2008, according to one of the joint leads.
Australian banks have been keen users of an Australian
government guarantee put in place late in 2008 to help banks
weather the global credit crisis.
More than A$74 billion equivalent ($57.59 billion) has been
raised so far by banks with the guarantee, according to
Deutsche Bank data.
Australia's top four banks, which have around A$100 billion
in annual combined funding requirements, rely heavily on
offshore investors to fullfill their borrowing needs.
Deal details are as follows:
Borrower National Australian Bank (NAB)
Issue Amount 500 million sterling
Maturity Date December 8, 2014
Coupon 5.375 pct
Reoffer price 99.441
Spread 285 basis points
Underlying Govt bond Over the Gilt
Payment Date June 1, 2009
Lead Manager(s) Bank of America Merrill Lynch,
RBC & Royal Bank of Scotland
Ratings Aa1 (Moody's), AA (S&P)
(Additional reporting by EMEA Fixed Income Desk Bangalore)
(Reporting by Cecile Lefort)
