NAB CPS II are fully paid preference shares that were issued directly by NAB on 17 December 2013 and listed on the ASX under the code NABPB. The issue price for NAB CPS II was $100 per NAB CPS II. Note they are not guaranteed or secured and are not a deposit account or any other account with NAB.
NAB CPS II are expected to pay a discretionary, quarterly, floating rate, non-cumulative dividend. The dividend rate is equal to the sum of the Bank Bill Rate and a margin of 3.25%. This is adjusted for NAB’s Tax Rate1 to reflect franking credits attached to each dividend (subject to availability)2. Dividends 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 Dividends 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 CPS II will mandatorily convert into NAB Ordinary Shares on 19 December 2022, provided certain conditions are met. With the prior written approval of APRA, NAB may elect to convert, redeem or resell NAB CPS II on 17 December 2020, or on the occurrence of particular events, provided certain conditions are met.
Holders of NAB CPS II will have no right to require NAB to convert NAB CPS II into Ordinary Shares, or to redeem or resell NAB CPS II. Without a conversion, redemption or resale, holders would have to sell their NAB CPS II on the ASX at the prevailing market price.
For more information on NAB CPS II please refer to:
- NAB Convertible Preference Shares II payment history and relevant ASX announcements
- Replacement Prospectus – NAB Convertible Preference Share II Offer (PDF, 1.69MB)
- Financial Services Guide (PDF, 2.63MB)
- ATO Class Ruling (PDF, 610KB)