ASX Announcement - National's Hybrid Tier 1 Capital Issue - 17 March 2005

National Australia Bank today announced an issue of US$800 million Tier 1 Trust Preferred Securities (approximately A$1.0 billion).

The securities carry a fixed coupon of 5.486% until March 2015, when they become floating at a rate of 1.5375% over 3 month LIBOR.  The perpetual securities are callable by the National at any time after March 2015, subject to the approval of APRA.

The National's Director, Finance & Risk, Mr Michael Ullmer, said that the deal was highly successful and was supported by a large number of US tier 1 investors.  This capital issue provided the National with the opportunity to reinforce our relationships with this important investor base.

This issue of hybrid Tier 1 capital is consistent with the National's objective of efficient capital management.  The proceeds from the Tier 1 issue will be used by the National's London Branch for general business purposes.

For further information:

Samantha Evans
Group Communications Adviser
Group Corporate Relations
03 8641 4982 work
0404 883 509 mobile 

Callum Davidson
Head of Group Investor Relations
03 8641 4964 work
0411 117 984 mobile

Hany Messieh
Manager, Investor Relations
03 8641 2312 work
0414 446 876 mobile 

This statement does not constitute an offer of any securities for sale.  The securities offered will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.