National Australia Bank doubled the size of its CPS II hybrid issue to A$1.5 billion last week, and set the margin to be paid over the bank bill rate at 325 basis points. This is the bottom end of the 325 to 340 bps range originally indicated.NAB ultimately raised $1.51 billion in March from its first convertible preference share issue. With the upsizing of the CPS II issue, NAB will have sold more than $3 billion of additional tier-one capital in one year. This will be a record for an Australian bank. Later in the week, NAB also sold US$1.25 billion of 5.25-year covered bonds in the US s144A market. The bonds were priced at 47 bps over.Westpac also sold US$1.5 billion of five-year covered bonds in the US s144A market. The bonds were sold at a spread of 46 bps over mid-swaps.Westpac sold US$1.25 billion of five-year covered bonds in May, at a spread of just 35 bps over, but this spread has since widened to around 43 to 44 bps in the secondary market.Prior to these latest covered bond issues, Moody's Investor Service noted that the four major banks had used 37 per cent of their covered bond issuance capacity so far, with eight percentage points used this year. Moody's expects that a further eight percentage points of capacity will be used in 2014.