It had aimed to raise between £300m and £500m.
The lender wanted to improve its capital position, and tested the waters with the innovative security, called core capital deferred shares (CCDS).
However the lender said it is able to meet regulators’ capital and leverage targets comfortably without the new issuance.
It is possible that regulators will increase the leverage ratio applied to lenders, meaning the Nationwide would have to reduce lending or increase its capital base further.
In such an instance the building society would now be able to issue more of the CCDSs knowing the market is willing to invest in the new securities.