Investing

National Australia Bank

Banks

National Australia Bank

Latest price

$ 104.94

  • ASX code
    YTMNAB
  • Maturity date
    20-May-2019
  • Capital structure
    Senior Unsecured
  • Coupon type
    FIXED
  • Coupon P.A
    4.25%
  • Issue Date
    20-May-2014
  • Next ex. distribution date
    09-Nov-2017
  • Next interest payment date
    20-Nov-2017
  • Payment frequency
    Semi-Annual

Issuer

National Australia Bank Limited

Base Terms

Debt Issuance Programmes dated 11 November 2003 and amended and restated as at 5 March 2014

Pricing Supplement

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.

Issue Size

A$500,000,000

Issue Date

20 May 2014

Maturity Date

20 May 2019

Interest Rate

4.25% per annum, payable semi-annually (in two coupons of 2.125%) in arrears on 20 May and 20 November in each year, including the Maturity Date. 

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 Benefits

Key benefits include:

  • interest paid semi-annually in arrears;
  • 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.    

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: 

  • Liquidity Risk - An active secondary market in respect of the Bonds may never be established or may be illiquid and this would adversely affect the value at which an investor could sell the 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.

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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