About NAB Subordinated Notes 2
NAB Subordinated Notes 2 (NSN2) were subordinated, unsecured notes issued by NAB on 20 March 2017 and was listed on the ASX under the code NABPE. The issue price for NAB Subordinated Notes 2 was $100 per NAB Subordinated Note 2. They are not guaranteed or secured and are not a deposit account or any other account of NAB.
On 11 July 2023, NAB gave notice to NSN2 holders that the NSN2 would be redeemed on the first optional redemption date of Wednesday, 20 September 2023 (in accordance with the NSN2 terms). For each NSN2 held as at 7:00pm (Melbourne time) on 12 September 2023, holders received a cash payment of $100 (being the face value of the NSN2) plus a final interest payment of $1.6429 in respect of the interest period from (and including) 20 June 2023 to (but not including) 20 September 2023.
NAB received written approval from the Australian Prudential Regulation Authority (APRA) for the redemption of NSN2. NAB’s redemption of NSN2 does not imply or indicate that NAB will in the future exercise any right it may have to redeem any other outstanding regulatory capital instruments issued by NAB. Any such redemption would also be subject to the receipt of prior written approval from APRA (which may or may not be provided).
Payments will be made in cash on 20 September 2023.
The last day of trading in NSN2 on the Australian Securities Exchange (ASX) was on 8 September 2023.
For Australian resident holders, the interest payments received will generally form part of your Australian taxable income. Interest payments are not franked.
For more information on the NABPE please refer to:
- NAB Subordinated Notes 2 payment history and relevant ASX announcements
- ASX Announcement – Notice of redemption of NAB Subordinated Notes 2 (PDF, 182KB), opens in new window
- Prospectus - NAB Subordinated Notes 2 (PDF, 4MB), opens in new window
- ASX Announcement - 20 March 2017 (PDF, 397KB), opens in new window
In accordance with the Terms of the NAB Subordinated Notes 2 (the NSN2 Terms), NAB had the right to elect to redeem all or some of the NAB Subordinated Notes 2 on 20 September 2023 or on any Interest Payment Date falling after that date. NAB was able to do so with at least 15 Business Days (and no more than 50 Business Days) notice to Holders of NAB Subordinated Notes 2, Computershare and the ASX.
NAB gave notice of its election to redeem all the outstanding NAB Subordinated Notes on 11 July 2023.
Payments of the final interest payment of $1.6429 and the Face Value (being $100) were made on 20 September 2023, in cash, in accordance with your existing payment instructions, unless you requested otherwise. All payments were subject to the NSN2 Terms.
The taxation implications of your investment in NAB Subordinated Notes 2 will depend on your individual circumstances. You should obtain your own taxation advice regarding the receipt of interest payments and the receipt of the final redemption amount in respect of the NAB Subordinated Notes 2.
A general outline of the taxation implications for certain Australian tax resident investors can be found in the Australian taxation summary in Section Eight of the Prospectus.
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