KWM assists on billion-dollar capital raising by NAB

King & Wood Mallesons (KWM) has advised on a billion-dollar capital raising effort by National Australia Bank (NAB).

The deal involves a $3bn fully underwritten institutional placement and a $1.25bn share purchase plan—generating a total of $4.25bn in fresh equity.

This transaction, the firm says, is the “ASX’s largest post-GFC capital raising.”

The raising is part of NAB’s initiatives to strengthen its balance sheet after its cash profits nosedived to $1.44bn as of 27 April due to the COVID-19 pandemic, the Sydney Morning Herald reported. One of the bank’s backers was major investor AustralianSuper.

NAB also cut down the dividends to be paid out on 3 July from 83¢ per share to 30¢.

KWM’s ECM team advised NAB on all aspects of the mammoth deal, led by partner Diana Nicholson and senior associate Jack Hill.

Nicholson said that the team drew on its experience in acting on a variety of capital raising efforts during the GFC while working on this transaction.

“This kind of large-scale raising during a time of high market volatility and frequent regulatory change requires a skilled and dedicated team,” she said.

Since March, the firm has altogether helped companies to raise $10.1bn in funds. Most recently, the firm guided chemicals company Incitec Pivot Limited on its $600m capital raising.