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SYDNEY, May 27 (Reuters) - National Australia Bank
(NAB.AX), the nation's top lender by assets, is in talks with
investors on a possible subordinated debt lower Tier 2 issue, a
fund manager said on Tuesday.
Preliminary pricing of the 10.5-year offer suggests around
170 basis points over BBSW/swap with an issue size of around
A$300 million ($288 million).
The notes would be callable after 5.5 years.
NabCapital, which would lead the planned offer, said it is
constantly engaged with investors about opportunities and
declined to comment on the possible sub debt issue.
Earlier in May, NAB raised A$1.1 billion of five-year bonds
at 108 basis points over BBSW and swap.
The bank's senior bonds are rated AA by S&P, Aa1 by Moody's
and AA by Fitch.
($1=A$1.04)
(Reporting by Cecile Lefort)
