The National Australia Bank Limited (NAB) said it has priced US$600 million hybrid Tier 1 capital notes, to be issued out of NAB’s New York Branch. The bank confirmed the notes would carry a fixed distribution of 8% per year, payable semi-annually from next week through to September 2016.

The bank initially set out to raise US$500 million, however said the issue was over subscribed by Asian and European institutional investors.

NAB said the proceeds from the Tier 1 issue would be used for general business purposes in the bank’s offshore branches and subsidiaries.

Over the last 12 months NAB has raised nearly $11 billion through various methods including a $2.75 billion equity raising in July.

At 1355 AEST, NAB shares were down 31c to $29.24.