National Australia Bank increased its post-results capital raise under the retail share purchase plan by A$750 million, taking the bank’s total capital raise to $4.25 billion.

Coping with the pandemic is the rationale for seeking even more capital than proposed three weeks ago.

“Together with our recently completed institutional placement, the capital raised through the offer will assist us to manage through a range of possible scenarios related to the COVID-19 pandemic, including a prolonged and severe economic downturn,” NABCEO Ross McEwan said.

The issue price of $14.15 per share under the SPP is equivalent to the issue price paid by investors under the institutional placement launched by NAB.

Around one quarter of NAB’s retail shareholders will take up new shares under the offer.