November 18, 2019 / 12:31 AM / 24 days ago

UPDATE 1-National Australia Bank launches second capital raising in a month

* NAB raising funds to meet new regulatory requirement

* NAB only one of Big Four below new core capital ratio

* Westpac, CBA also announced raising in recent weeks (Updates throughout with background on regulatory requirements, capital raising by peers)

Nov 18 (Reuters) - National Australia Bank said on Monday it was looking to raise A$1.4 billion ($959.70 million) through the issue of medium-term notes, its second capital raising in a month, to help beef up its capital ahead of a regulatory deadline.

Of the total issue, A$1.18 billion of notes will carry a floating rate, and A$225 million will carry a fixed rate. Both sets of notes will be due in November 2031.

Australia’s biggest banks have been eyeing ways to raise capital ahead of a new core capital ratio requirement of 10.5% by Jan. 1.

NAB finds itself in a difficult spot, as its the only one of the Big Four banks that is below that level, currently sitting at 10.38%.

The country’s third largest lender earlier this month announced a $1.55 capital raising via a partially underwritten dividend reinvestment plan.

Westpac Banking Corp also this month launched a A$2.5 billion capital issue, the largest raising by one of the Big Four since 2015.

Commonwealth Bank of Australia, the country’s top lender, announced a A$2.5 billion notes issue in September.

$1 = 1.4588 Australian dollars Reporting by Nikhil Kurian Nainan in Bengaluru; editing by Jane Wardell

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