NAB Subordinated Notes 2 are subordinated, unsecured notes issued by NAB on 20 March 2017 and 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.
The NAB Subordinated Notes 2 have a maturity date of 20 September 2028. Subject to APRA approval, NAB may elect to redeem the NAB Subordinated Notes 2 on 20 September 2023 (or on any subsequent Interest Payment Date), or on the occurrence of particular events, provided certain conditions are met.
NAB Subordinated Notes 2 will pay non-discretionary, cumulative interest, quarterly in arrears. The interest rate is a floating rate equal to the sum of the 3 month Bank Bill Rate, plus a fixed margin of 2.20% per annum. Interest is payable on 20 March, 20 June, 20 September and 20 December in each year.
NAB must immediately convert NAB Subordinated Notes 2 into ordinary shares of NAB if a Non-Viability Trigger Event occurs. A Non-Viability Trigger Event may occur where NAB encounters severe financial difficulty.
Holders have no right to request that NAB redeem or convert the NAB Subordinated Notes 2.
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: