National Australia Bank Plans $2.2 Billion Debt Sale

National Australia Bank Ltd. plans to sell $2.2 billion of fixed- and floating-rate senior bank notes in a three-part offering as soon as today, according to a person familiar with the transaction.

The sale includes 3-year fixed- and floating-rate debt and 10-year fixed-rate notes, said the person, who declined to be identified because terms aren’t set. The bonds may be rated Aa1 by Moody’s Investors Service and AA by Standard & Poor’s, the person said.

NAB plans to sell $450 million of 3-year floating rate notes that may yield 76 basis points more than the 3-month London interbank offered rate; $750 million of 3-year fixed-rate securities that may pay 103 basis points more than similar- maturity U.S. Treasuries, and $1 billion of 10-year fixed-rate notes that may pay a spread of 150 basis points, the person said.

Earlier today, NAB marketed only the fixed-rate debt.

The offering follows Sydney-based Westpac Banking Corp.’s $2.5 billion debt sale on Dec. 2, the largest U.S. corporate bond offering by a foreign bank in six weeks.

Three-month Libor, the rate at which banks lend to each other, is 0.3 percent. A basis point is 0.01 percentage point.

To contact the reporters on this story: Boris Korby in New York at bkorby1@bloomberg.net;

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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