National Australia Bank (ASX:NAB) issued HK$400 million fixed-rate reset subordinated notes due July 2035 on Thursday, as part of its $100 billion global medium-term note program, according to a same-day Australian bourse filing.

The notes will carry a fixed interest rate of 4.02% per annum from the issue date to the interest payment date falling on or nearest to July 24, 2030, the reset date. After that, the interest rate will be set at a rate per annum equal to the reset rate, equal to the sum of the mid-market swap rate and the margin.

The notes convert into fully paid ordinary shares of the banks where the Australian Prudential Regulation Authority (APRA) determines this to be necessary.