National Australia Bank Limited Capital Note 6

This information is general in nature and may not be construed as advice

National Australia Bank Limited (ABN 12 004 044 937) intends to raise $1 billion with the ability to raise more or less.  The proceeds of the offer will be used for general corporate purposes. The Australian Prudential Regulation Authority (“APRA”) have confirmed it will qualify as Tier 1 Capital for the purposes of NAB’s regulatory capital requirements.  NAB is a financial services organisation serving over 7,000,000 customers.

This capital notes offering has the following characteristics:  

• NAB is expected to raise $1b, with the ability to raise more or less. 
• NAB Capital Note 6 is expected to be quoted on the ASX under the code ‘NABPI’
• The price is $100 per note with the minimum application being 50 notes ($5,000) and thereafter in multiples of 10 NAB Capital note 6 ($1,000).
• Distributions are paid quarterly and are sub-ordinated, unsecured, perpetual, non-cumulative floating rate payments and are expected to be fully franked.
• The first distribution is scheduled to be paid on 17th September 2022.
• The distribution payments will be based on a floating rate.  The rate will be calculated based on the 90-Day BBSW plus a margin of 3.15%-3.35% per annum.
• NAB may convert or redeem the capital notes on the optional exchange dates (17th December 2029, 17th March, 2030, 17th June 2030 and 17th September 2030).
• If the notes are converted, holders will receive a number of NAB shares at a 1% discount.
• The notes rank ahead of Ordinary Shares and equally with other ranking obligations and behind all senior creditors.
• NAB Capital Note 6 is expected to trade on the ASX on the 7th July, 2022.
• Further guidance on investing in bank hybrid securities can be found on ASIC’s Money Smart Website:
• 
  https://moneysmart.gov.au/investments-paying-interest/hybrid-securities-and-notes

The prospectus for this issue can be found by clicking on the link below:

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02528699-3A594949?access_token=83ff96335c2d45a094df02a206a39ff4