National confirms prices for popular harvest loan product
National Australia Bank has today announced pricing details for its harvest loan product, National Wheat Advance, for the 2004-05 season, following AWB Ltd’s confirmation of the Nominated Estimated Pool Return (NEPR).
National Wheat Advance is a loan against a grower’s expected AWB payment for wheat sold into the AWB Distributions option.
Pricing Details:
Wheat Contract Valuation Prices
Pool Return for the Selected Borrowing Level
| Grade |
NEPR |
Full Recourse 80% |
Underwritten 80% |
Underwritten 70% |
Underwritten 60% |
Underwritten 50% |
| APH |
$ 221.00 |
$ 176.80 |
$ 176.80 |
$ 154.70 |
$ 132.60 |
$ 110.50 |
| AH |
$ 207.50 |
$ 166.00 |
$ 166.00 |
$ 145.25 |
$ 124.50 |
$ 103.75 |
| AUH |
$ 204.75 |
$ 163.80 |
$ 163.80 |
$ 143.33 |
$ 122.85 |
$ 102.38 |
| APW |
$ 200.00 |
$ 160.00 |
$ 160.00 |
$ 140.00 |
$ 120.00 |
$ 100.00 |
| APWT |
$ 206.00 |
$ 164.80 |
$ 164.80 |
$ 144.20 |
$ 123.60 |
$ 103.00 |
| ASW |
$ 193.00 |
$ 154.40 |
$ 154.40 |
$ 135.10 |
$ 115.80 |
$ 96.50 |
| ASWN |
$ 203.00 |
$ 162.40 |
$ 162.40 |
$ 142.10 |
$ 121.80 |
$ 101.50 |
| APN |
$ 213.00 |
$ 170.40 |
$ 170.40 |
$ 149.10 |
$ 127.80 |
$ 106.50 |
| APDR* |
$ 219.00 |
$ 175.20 |
$ 153.30 |
$ 134.14 |
$ 114.98 |
$ 95.81 |
| AGDR* |
$ 189.00 |
$ 151.20 |
$ 132.30 |
$ 115.76 |
$ 99.23 |
$ 82.69 |
| AGP |
$ 185.00 |
$ 148.00 |
$ 148.00 |
$ 129.50 |
$ 111.00 |
$ 92.50 |
| ASF1 |
$ 206.00 |
$ 164.80 |
$ 164.80 |
$ 144.20 |
$ 123.60 |
$ 103.00 |
| AUW |
$ 180.00 |
$ 144.00 |
$ 144.00 |
$ 126.00 |
$ 108.00 |
$ 90.00 |
| FEED* |
$ 150.00 |
$ 120.00 |
$ 105.00 |
$ 91.88 |
$ 78.75 |
$ 65.63 |
Interest Rates**
| Tier |
Rate |
| $1 –$99,999 |
7.70% |
| $100,000 – $199,999 |
7.40% |
| $200,000 – $399,999 |
7.10% |
| $400,000 and over |
6.85% |
Fees**
Underwritten Version
| Customers Nominated % Credit Limit |
Underwriting Fee per tonne |
| 80% |
$1.60 |
| 70% |
$1.35 |
| 60% |
$0.95 |
| 50% |
$0.65 |
Non Underwritten version
| Customers % Credit Limit |
Activation Fee per tonne |
| 80% |
$0.20 |
This season, the National has responded to market demand for more flexibleharvest finance options with the release of a non-underwritten, or Full Recourse,version of the National Wheat Advance.
For growers who want easy access to the value of their wheat pool contracts andwant to manage the risk themselves of a fall in wheat prices, the Full Recourseoption provides access to 80% of the estimated pool return, GST inclusive, andwill mean growers pay no underwriting fee.
The Full Recourse product incurs an activation fee of 20 cents per tonne of wheatdelivered, has no underwriting fee and, like the fully underwritten version, has noapplication fee or line service fee.
The Underwritten National Wheat Advance lets growers borrow against theirchoice of 80%, 70%, 60% or 50% of the estimated pool return (GST exclusive).
The National may review the contract value of grower payments in May.
* When a grower selects the Maximum borrowing level for FEED, APDR and AGDR the maximum underwritten price is 70% of the NEPR. In this instance a grower will be charged the Underwriting Fee based on the selected borrowing level.
** Interest Rates and Underwriting Fees are current at 5 November 2004 and are subject to change. The facilities are subject to Eligibility Criteria and Terms and Conditions, which are available from the National.
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