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NAB seeks US$500m in hybrid capital

National Australia Bank said it plans to sell about US$500 million in hybrid capital. The securities will be sold to US investors.The securities will be perpetual, and non-callable for seven years, with a coupon stepping up in 2014, Reuters reported. Pricing is expected today or tomorrow.NAB opted not to raise additional share capital from retail investors under its recent offer, and a hybrid is probably a more efficient mix of capital.But the bank has annoyed some of its shareholder base over the mix of its capital raising a couple of months ago, and it's of interest that the bank is not looking to sell a similar hybrid to the domestic institutional and retail investor base, given the ample demand for Commonwealth Bank's recent PERLS issue.

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