About NAB Capital Notes
NAB Capital Notes were convertible notes directly issued by NAB on 23 March 2015 and listed on the ASX under the code NABPC. The issue price for NAB Capital Notes was $100 per NAB Capital Note. They were not guaranteed or secured and were not a deposit account or any other account with NAB.
On 23 March 2020, all NAB Capital Notes on issue were mandatorily purchased for $100 per NAB Capital Note and a final distribution was paid by NAB consisting of a cash payment of $0.7718 per NAB Capital Note.
For more information on NAB Capital Notes refer to:
Frequently asked questions
-
On 23 March 2020, all NAB Capital Notes were mandatorily purchased for $100 per NAB Capital Note and a final distribution consisting of a cash payment of $0.7718 per NAB Capital Note was paid to holders on the record date for the final distribution.
Once all NAB Capital Notes were mandatorily purchased, $750 million of NAB Capital Notes were converted into NAB ordinary shares, with the balance redeemed by NAB. The issue price of the ordinary shares issued on conversion was based on 0.6% discount to the volume weighted average price of NAB ordinary shares over certain days between 17 February 2020 and 20 March 2020.
-
NAB Capital Notes were resold to provide NAB with the flexibility to convert $750 million of the NAB Capital Notes into NAB ordinary shares, and redeem the balance. The conversion provided NAB with an increase of Common Equity Tier 1 of approximately 18 basis points.
-
On 23 March 2020, $750 million of NAB Capital Notes were converted into NAB ordinary shares, with the balance redeemed by NAB. The issue price of ordinary shares issued on conversion of the NAB Capital Notes was based on 0.6% discount to the volume weighted average price of NAB ordinary shares over certain days between 17 February 2020 and 20 March 2020.
-
Australian resident holders must include any cash distributions paid on the NAB Capital Notes in their Australian taxable income.
The cash component may also be franked under Australia's dividend imputation system. Any franking credits attached to the distribution will normally also form part of an Australian resident investor’s taxable income. However, they're generally entitled to a rebate of tax for the franking credits attached to the dividend.
In some circumstances, Australian resident individuals may be entitled to a refund from the Australian Taxation Office for any excess franking credits (eg. if their taxable income is too low to make them liable to tax, or the franking credits exceed their overall tax liability).
-
Australian resident holders must include any cash distributions paid on the NAB Capital Notes in their Australian taxable income.
The cash component may also be franked under Australia's dividend imputation system. Any franking credits attached to the distribution will normally also form part of an Australian resident investor’s taxable income. However, they're generally entitled to a rebate of tax for the franking credits attached to the dividend.
In some circumstances, Australian resident individuals may be entitled to a refund from the Australian Taxation Office for any excess franking credits (eg. if their taxable income is too low to make them liable to tax, or the franking credits exceed their overall tax liability).
-
Distributions on the NAB Capital Notes should be disclosed in your Australian income tax return as franked dividends.
-
No. The relevant information that NAB Capital Notes holders require for tax purposes is contained in the quarterly distribution statements provided to NAB Capital Notes holders. The relevant quarterly distribution statements are also readily available from our Share Registry’s website www.investorcentre.com/au, opens in new window.
-
Yes, NAB has obtained a class ruling which outlines the tax implications for investors in detail. View the ATO Class Ruling (PDF, 322KB), opens in new window.
Important information
Apologies but the Important Information section you are trying to view is not displaying properly at the moment. Please refresh the page or try again later.
NAB's Tax Rate means the Australian corporate tax rate applicable to the franking account of NAB on the relevant Distribution Payment Date (currently 30%).
NAB Capital 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.