NAB hybrid tries something different

Struggling hybrid notes from other banks and better offers offshore will probably not deter local investors from NAB's new hybrid.

Summary: NAB has sought to differentiate its hybrid offer, rather than offering an even larger credit margin than its rivals. The notes can be called after five years and have a mandatory conversion date seven years after the date of issue – both earlier than its competitors.

Key take out: A shorter term structure will probably be enough to attract investor interest. But comparable hybrid issues in international markets are offering higher margins.

Key beneficiaries: General investors. Category: Hybrid securities.

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