NAB Subordinated Notes

NAB Subordinated Notes are interest bearing notes and constitute direct, subordinated and unsecured obligations of NAB. Each NAB Subordinated Note is issued on and subject to the provisions of the Deed Poll and the Terms. The NAB Subordinated Notes have been issued with a face value of $100 each and are listed on the ASX under code NABHB.

The term of the NAB Subordinated Notes is 10 years and the maturity date is 18 June 2022 (unless redeemed earlier by NAB in accordance with their terms).

Interest on the NAB Subordinated Notes is payable quarterly in arrears. The interest rate is equal to the sum of the 90-day Bank Bill Rate, plus a fixed margin of 2.75% per annum.

The Bank Bill Rate is set on the first business day of each interest period (and in the case of the first interest period, it was set on the issue date). Interest is payable on the NAB Subordinated Notes on 18 September, 18 December, 18 March and 18 June in each year.

For Australian resident holders, the distributions received will generally form part of your Australian taxable income. Franking credits are not attached to the distributions made.

For more information on the NABHB please refer to:

Important information

Note: the above information is not financial advice. Please consult your independent financial adviser if you are considering investing in NABHB.

The NAB Subordinated Notes do not constitute deposit liabilities of NAB. They are not protected accounts for the purposes of the Banking Act 1959 (Cth) or any other accounts. They're 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.

The NAB Subordinated Notes 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.

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