11:38 AM EDT, 06/17/2024 (MT Newswires) -- National Bank of Canada ( NTIOF ) said Monday it closed a bought-deal subscription-receipt offering and concurrent private placement that raised $1 billion to support the $5-billion acquisition of Canadian Western Bank ( CWESF ) .

In the public offering, National Bank sold an underwriting syndicate 4.45-million subscription receipts priced at $112.30 to raise $500 million. National Bank also granted the underwriters an over-allotment option to buy up to an additional 667,950 subscription receipts exercisable for up to 30 days.

In the concurrent private placement, National Bank sold a further 4.45-million receipts to Caisse de depot et placement du Quebec, to raise a further $500 million, while also giving it a 30-day right to also buy a further 667,950 receipts.

National Bank plans to use the proceeds to support regulatory capital ratios ahead of the close of its acquisition of Canadian Western Bank ( CWESF ) announced last week, and to pay any cash costs and transaction expenses. The acquisition is expected to close by the end of 2025.

National Bank shares were last seen down $0.95 to $105.48 on the Toronto Stock Exchange.

Price: 105.54, Change: -0.89, Percent Change: -0.84