National Australia Bank unveils rights issue

Sydney

NATIONAL Australia Bank Ltd (NAB) said that it plans to raise A$5.5 billion (S$5.8 billion) in the country's biggest ever rights issue, as the lender boosts capital ahead of regulatory changes and an exit from its UK business.

The lender will offer 194 million new shares, equal to about 8 per cent of issued capital, at A$28.50 each, a 19 per cent discount to Wednesday's closing price.