National Australia Bank Limited
Debt Issuance Programme and MTN Deed Poll dated 11 November 2003 and amended and restated as at 5 September 2014
Dated 2 June 2015
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 Bank Bill Rate plus 0.80%, payable in arrears on 3 March, 3 June, 3 September and 3 December in each year, including the Maturity Date.
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 Interest Period.
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 impact affect NAB’s financial performance;
- 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 Bonds, or NAB fails to perform any obligation in relation to the Bonds, such event or failure may impact on the value of an investment in the Bonds, the transferability of the Bonds and the ability of a holder to recover amounts due under the Bonds.
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.
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
- 3 March 2017
- 3 June 2017
- 3 September 2017
- 3 December 2017
- 3 March 2018
- 3 June 2018
- 3 September 2018
- 3 December 2018
- 3 March 2019
- 3 June 2019
- 3 September 2019
- 3 December 2019
- 3 March 2020
- 3 June 2020 - Maturity Date