Investing

National Australia Bank

Banks

National Australia Bank

Latest price

$ 100.51

  • ASX code
    YTMF15
  • Maturity date
    10-Feb-2023
  • Capital structure
    Senior Unsecured
  • Coupon type
    FLOATING
  • Coupon P.A
    BBSW + .80%
  • Issue Date
    10-Nov-2017
  • Next ex. distribution date
    31-Jan-2019
  • Next interest payment date
    11-Feb-2019
  • Payment frequency
    Quarterly

Issuer

National Australia Bank Limited

Base Terms

Debt Issuance Programme and MTN Deed Poll dated 11 November 2003 and amended and restated as at 5 September 2014.

Pricing Supplement

Dated 9 November

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.

The Bonds are not protected accounts for the purposes of the Banking Act. In addition, the Bonds are not guaranteed or insured by the Australian Government or under any compensation scheme of the Australian Government, or by any other government, under any other compensation scheme or by any government agency or any other party.

Coupon Schedule to Maturity

  • 10 February 2019
  • 10 May 2019
  • 10 August 2019
  • 10 November 2019
  • 10 February 2020
  • 10 May 2020
  • 10 August 2020
  • 10 November 2020
  • 10 February 2021
  • 10 May 2021
  • 10 August 2021
  • 10 November 2021
  • 10 February 2022
  • 10 May 2022
  • 10 August 2022
  • 10 November 2022
  • 10 February 2023 - Maturity Date

Issue Size

A$1,875,000,000

Issue Date

10 November 2017

Maturity Date

10 February 2023

Interest Rate

3 month Bank Bill Rate plus 0.80%, payable in arrears on 10 February, 10 May, 10 August and 10 November in each year, including the Maturity Date.

Reset Dates

10 February, 10 May, 10 August and 10 November in each year.

Reference Rate

3 Month BBSW

Interest Margin

1.02%

Bond Denomination

A$1,000

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.

Key Risks

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

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.

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