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The National Australia Bank has today announced competitive underwriting fees for its popular National Wheat Advance product and a 'flexibility advantage' over some competitor products that could save growers money.
The National Wheat Advance offers growers the flexibility of selecting a percentage of the nominated estimated pool return to determine their line of credit. Percentages that can currently be selected are 80%, 70%, 60% and 50%. This directly links the cost of underwriting fees to the grower's nominated borrowing limit.
Not all competitors' underwriting fees reduce along with the selected borrowing limit or the amount of funds drawn down.
General Manager Agribusiness Mike Carroll said National is committed to driving competition in the market.
"Unlike some of our competitors, the National's underwriting fees are linked to the customer's selected borrowing limit. There is also the added flexibility of being able to protect the value of AWB Nominated Estimated Pool Return without the need to draw upon the facility to benefit from underwriting."
"The National's history of driving competition in the wheat advance market has helped countless farmers manage their cashflow."
"Our flexible borrowing limits and drawdown options were groundbreaking and National customers are not limited to one drawing per month after harvest. We included Feed Wheat, Noodle and Durum grades and have made the product available to sharefarmers.
"The National also provides a range of methods to draw down an advance, including 24 hour access to funds, 7 days a week via internet banking. "
The underwriting prices announced today are:
Underwriting Fees * (Excluding durum and feed grades**)
| Nominated % of Estimated Pool Return |
Underwriting Fees per tonne effective 31 October 2003- |
| 80% |
$1.60 |
| 70% |
$1.35 |
| 60% |
$0.95 |
| 50% |
$0.65 |
There is no refund of underwriting fees if borrowings are less than the established credit limit.
The National's interest rates are competitive and are the same as applied last year:
Interest Rates*
Total Amount
Drawndown
| $1 - $99,999 |
7.20% pa |
| $100,000 - $199,999 |
6.90% pa |
| $200,000 - $399,999 |
6.60% pa |
| $400,000 and over |
6.35% pa |
Repayments from pool distributions will not cause the applicable interest rate to change.
* Underwriting Fees and interest rates are current at 31 October 2003 and are subject to change.
** For durum and feed grades, price will be underwritten to a maximum of 70% of the Nominated Estimated Pool Return. For full fee details, refer to a National Agribusiness Manager.
For further information, please contact:
Geoff Lynch
Communication Adviser
Tel: (03) 8641 3270
Mob: 0405 319 819
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