NAB adds to Aussie GG buyback spree

01 Dec 2010

National Australia Bank became the latest bank to buy back government guaranteed bonds set to mature in 2012. It follows buyback offers from Investec Australia and Citigroup Australia. However, NAB’s offer is the biggest (and tightest so far).

NAB is offering to buy back A$1.62bn of FRN notes and A$1.33bn of fixed rate notes, the entire issue. It is offering a rate of mid-swaps flat for the FRN.

Australian banks are competing aggressively for deposits, partly as a result of APRA rules which favour deposit funding over ...

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