New Issue: NAB Capital Notes 5

On 16 November 2020, National Australia Bank (ASX: NAB) launched an offer for NAB Capital Notes 5 (ASX: NABPH), to raise $750 million, with the ability to raise more or less. The offer is accompanied by a Reinvestment Offer for holders of NAB Convertible Preference Shares (ASX: NABPB), which have been called (first call date 17 December 2020).

These securities are structured as unsecured, subordinated, perpetual, convertible notes. Distributions are expected to be discretionary, non-cumulative, floating rate, fully franked, and paid on a quarterly basis in arrears until converted or redeemed. The margin is guided at 3.50% to 3.70% p.a. above 90-day BBSW.

NABPH are ASX-listed AT1 securities, similar in structure to NABPB. This security has no fixed maturity date but is scheduled for mandatory conversion into NAB ordinary shares on 17 December 2029, or later, when conversion conditions have been satisfied. NAB can, subject to approval by APRA, NAB can redeem or resell the Notes for cash at face value or convert the Notes into NAB ordinary shares on 17 December 2027, subject to conversion conditions.

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Prospectuspdf | 2 MB