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National Australia Bank (NAB) logo

National Australia Bank

Capital Notes 2

Morgans is Joint Lead Manager(1) to the Offer

National Australia Bank (NAB) has announced that it is seeking to raise $750 million(2) through the issue of Capital Notes 2 (NABPD).

Capital Notes 2 are suitable for investors looking for regular fully franked income by way of floating rate distributions from one of Australia's leading providers of banking and financial services.

Key features of the Offer

  • Ability to secure a Broker Firm allocation in Capital Notes 2 via Morgans
  • Capital Notes 2 have a face value of $100 and are redeemable by the issuer on 7 July 2022(3)
  • If not redeemed before, Capital Notes 2 convert into NAB shares on 8 July 2024(4)
  • Quarterly gross distributions(5) equal to the 90 day bank bill rate plus a margin of [4.95 - 5.10%] i.e. approximately [6.95% - 7.10%] p.a.(6)
  • Capital Notes 2 distributions are discretionary but must be paid ahead of NAB ordinary dividends, and if not paid, dividend and capital restrictions apply
  • Capital Notes 2 are regulatory capital instruments and contain both capital and non-viability trigger conditions which may impact their value in certain circumstances(7)
  • ASX listed liquidity(8)

Issuer: National Australia Bank

Transaction: Capital Notes 2 Offer

Morgans role: Joint Lead Manager

Offer size: $750 million 

Offer opens: 8 June 2016

Morgans Offer closes: 1 July 2016

1. Morgans will receive fees for its role.
2. NAB may issue more or less than $750 million of Capital Notes 2.
3. Subject to APRA approval.
4. Conversion is subject to conversion tests as outlined in the prospectus.
5. Distributions are non-cumulative, paid at the discretion of the NAB board and subject to payment tests.
6. Based on 90 Day Bank Bill rate of 2.00%.
7. Such conditions may in certain circumstances impact the security's value; full detail is contained in the Prospectus.
8. Application has been made to list Capital Notes 2 on ASX.

More information

If you have any questions about the offer, please contact your Morgans adviser, call 134 226 or find your nearest office here.

Download Prospectus

NAB Capital Notes 2 are being offered only in Australia and the Prospectus will only constitute an offer to a person receiving it in Australia. Not for distribution, directly or indirectly, in the United States or to, or for the account or benefit of, US Persons, except in accordance with an available exemption from the registration requirements of the US Securities Act. The distribution of the Prospectus (including an electronic copy) in jurisdictions outside Australia may be restricted by law.

Download