NAB Capital Notes 5 are convertible notes directly issued by NAB on 17 December 2020 and listed on the ASX under the code NABPH. The face value and issue price for NAB Capital Notes 5 is $100 per NAB Capital Note 5. They are not guaranteed or secured, are not Protected Accounts and are not a deposit account or any other account with NAB.
NAB Capital Notes 5 are expected to pay a discretionary, quarterly, floating rate, non-cumulative Distribution.1 The Distribution Rate is equal to the sum of the Bank Bill Rate and a Margin of 3.50%, a sum adjusted for NAB’s Tax Rate2 to reflect franking credits attached to each Distribution (subject to availability).3 Distributions are expected to be franked at the same rate as dividends paid on NAB’s Ordinary Shares. However, franking is not guaranteed. The extent to which Distributions will be franked will depend on a number of factors, including the Group’s capital management plan and the level of profits generated by the Group that will be subject to tax in Australia.
NAB Capital Notes 5 will mandatorily convert into NAB Ordinary Shares on 17 December 2029, provided certain conditions are met. With the written prior approval of APRA, NAB may elect to Convert, Redeem or Resell NAB Capital Notes 5 on 17 December 2027, or on the occurrence of particular events, provided certain conditions are met.
Holders will have no right to require NAB to Convert NAB Capital Notes 5 into Ordinary Shares, or to Redeem or Resell NAB Capital Notes 5. Without a Conversion, Redemption or Resale, Holders would have to sell their NAB Capital Notes 5 on the ASX at the prevailing market price.
For more information on the NABPH please refer to: