About NAB Convertible Preference Shares
NAB Convertible Preference Shares (NAB CPS) were fully paid preference shares issued directly by NAB, and were listed on the ASX under code NABPA. The issue price for NAB CPS was $100 per NAB CPS. They were not guaranteed or secured, and were not a deposit account or any other account with NAB.
On Wednesday 20 March 2019, all CPS were mandatorily purchased for $100 per CPS and a final dividend of $1.2976 per CPS was paid to CPS holders on the record date for the final dividend, meaning that CPS holders received a cash payment of $0.9083 per CPS.
A general outline of the taxation implications for certain holders of CPS who are Australian residents for tax purposes can be found in the Australian Taxation Summary in Section Eight, subsection 5 of the NAB Capital Notes 3 Prospectus. The taxation implications of your investment in NAB CPS depend on your individual circumstances.
For more information on the NAB CPS please refer to:
- NAB CPS payment details and relevant ASX announcements
- NAB Convertible Preference Shares - Resale Notice, opens in new window
- ASX Announcement (PDF, 381KB), opens in new window
- Prospectus – NAB Convertible Preference Shares (PDF, 2MB), opens in new window
- ATO Class Ruling (PDF, 348KB), opens in new window
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On Wednesday 20 March 2019, all CPS were mandatorily purchased for $100 per CPS and a final dividend of $1.2976 per CPS was paid to CPS holders on the record date for the final dividend, meaning that CPS holders received a cash payment of $0.9083 per CPS.
Once all CPS had been mandatorily purchased, $750 million of CPS was converted into NAB ordinary shares, with the balance of CPS redeemed by NAB. The issue price of shares issued on conversion of the CPS was based on the volume weighted average price of NAB ordinary shares on 23 days between 11 February 2019 and 19 March 2019.
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CPS were resold to provide NAB with the flexibility to convert some of the CPS into NAB ordinary shares, and redeem the balance. The conversion provided NAB with an increase of Common Equity Tier 1 on a level 2 basis of approximately 19 basis points, and contributes to the transition to a Common Equity Tier 1 capital ratio above 10.5 per cent by January 2020, in line with the Australian Prudential Regulation Authority (APRA) requirement for Unquestionably Strong capital levels.
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On 20 March 2019, $750 million of CPS was converted into NAB ordinary shares, with the balance of CPS redeemed by NAB. The issue price of shares issued on conversion of the CPS was based on the volume weighted average price of NAB ordinary shares over 23 days between 11 February 2019 and 19 March 2019.
Important information
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Note: the above information is not financial advice.
NAB CPS did not constitute deposit liabilities of NAB. They were not protected accounts for the purposes of the Banking Act 1959 (Cth) or any other accounts. They were not guaranteed or insured by any government, government agency or compensation scheme of the Commonwealth of Australia or any other jurisdiction, by any member of the NAB Group or by any other party.
NAB CPS have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the 'Securities Act'), or the securities laws of any state or other jurisdiction of the United States. They may not be offered, sold or resold in the United States or to, or for the account or benefit of, any "U.S. Person" (as defined in Regulation S under the Securities Act) absent registration or an applicable exemption from the registration requirements.