National Australia Bank Limited
Debt Issuance Programmes dated 11 November 2003 and amended and restated as at 23 August 2011
Dated 19 May 2014
Nature of the Bonds
Direct, unconditional, unsubordinated and unsecured obligations of the Issuer and will rank at least equally with all other unsecured and unsubordinated obligations of the Issuer, except liabilities mandatorily preferred by law. The bonds rank senior to the Issuer’s subordinated obligations, including all subordinated MTNs.
3 Month BBSW + 0.85%, payable in arrears on 20 February, 20 May, 20 August and 20 November in each year, including the Maturity Date.
20 February, 20 May, 20 August and 20 November
3 Month BBSW
Repayment at Par on the Maturity Date
On the Maturity Date, bondholders are scheduled to receive the Face Value and the final Coupon Payment for the last Coupon Period.
Key benefits include:
- interest paid quarterly in arrears;
- interest paid is floating rate;
- interest paid as 100% cash;
- interest is not deferrable nor are interest payments discretionary;
- rank equally with all other senior and unsecured creditors of the Issuer.
The value of an investment in NAB Bonds may fluctuate due to various factors, including investor perceptions, worldwide economic conditions, interest rates, debt market conditions and factors that may affect NAB’s financial performance. The following risks may also affect an investment in NAB Bonds:
- Lack of liquidity – in the secondary market for NAB Bonds;
- Interest rate risks – bondholders may suffer unforeseen losses due to fluctuations in interest rates;
- Regulatory risks – The banking industry in Australia is highly regulated, and regulatory changes may adversely affect NAB’s financial performance;
- Banking Act – The NAB Bonds are not protected accounts within the meaning of the Banking Act 1959, as such there will likely be significant liabilities of the Issuer that are mandatorily preferred;
- Litigation risks – Risks relating to litigation and regulatory actions;
- Operational risks – The risk of loss resulting from inadequate internal processes and controls, people and systems or from external events;
- Default risk – if an event of default occurs under the NAB Bonds, or NAB fails to perform any obligation in relation to the NAB Bonds, such event or failure may impact on the value of an investment in the NAB Bonds, the transferability of the NAB Bonds and the ability of a holder to recover amounts due under the NAB Bonds.
Early Redemption by Issuer
Yes, for tax reasons
Events of Default:
Events of Default include:
- Payment Default: Applicable with a 30 day cure period for interest payments and a 7 day cure period for principal payments
- Breach of other obligations: Applicable, with a 30 day cure period;
- Insolvency / Winding Up: Applicable
- Enforcement against assets: Applicable, with a cure period of 60 days, and must materially prejudice the performance by the Issuer of its obligations under the bonds
- Enforcement of security: Applicable, with a cure period of 45 days, and must materially prejudice the performance by the Issuer of its obligations under the bonds
- Cessation of business: the Issuer ceases to carry on a banking business in the Commonwealth of Australia, or the Issuer’s authority under the Banking Act to carry on banking business in Australia is revoked.
Coupon Schedule to Maturity
- 20 February 2017
- 20 May 2017
- 20 August 2017
- 20 November 2017
- 20 February 2018
- 20 May 2018
- 20 August 2018
- 20 November 2018
- 20 February 2019
- 20 May 2019 - Maturity Date