March 12, 2020 / 11:49 PM / a month ago

UPDATE 1-Australia's Macquarie follows NAB to withdraw notes offer due to volatile markets

(Adds details on NAB, markets)

March 13 (Reuters) - Australia’s Macquarie Bank on Friday withdrew a capital notes offer due to highly volatile market conditions in recent weeks, a day after National Australia Bank cancelled its raising. The banking arm of financial conglomerate Macquarie Group said it will cancel its A$500 million ($314.25 million) Capital Note 2 offering. The country’s third largest lender NAB had on Thursday decided to withdraw a capital notes offer, weeks after it said it would increase the amount it was looking to raise from its Capital Notes 4 offer to at least A$1.95 billion.

Companies are looking to avoid the huge swings in financial markets triggered by worries around the economic impact of the coronavirus on fears that it could hit the value of the notes.

Australian stocks are firmly in bear market territory, falling up to nearly 32% since Feb. 20.

Macquarie said its capital position remained strong and that the bank’s proforma common equity tier 1 capital ratio was 12.7% as of Dec. 31. ($1 = 1.5908 Australian dollars) (Reporting by Niyati Shetty in Bengaluru; Editing by Arun Koyyur)

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