PRESS RELEASES
PRESS RELEASES
Not for distribution to U.S. news wire services or for dissemination in the United States.
Further to its announcement of September 20, 2023,
National Bank of Canada (the “Bank”) (TSX: NA) announced today the
dividend rates applicable to the Non-Cumulative 5‑Year Rate Reset
First Preferred Shares, Series 42 Non-Viability Contingent Capital
(NVCC) (the “Series 42 Shares”) and the Non-Cumulative Floating Rate
First Preferred Shares, Series 43 (NVCC) (the “Series 43 Shares”).
Holders of Series 42 Shares, should any remain outstanding after
November 15, 2023, will be entitled to receive fixed-rate
non-cumulative preferential cash dividends on a quarterly basis, as
and when declared by the Board of Directors of the Bank and subject to
the provisions of the Bank Act (Canada). The dividend rate for
the five-year period commencing on November 16, 2023, and ending on
November 15, 2028, will be 7.056%, being equal to the sum of the
five-year Government of Canada Bond yield (4.286%) plus 2.77%, as
determined in accordance with the terms of the Series 42 Shares.
Holders of Series 43 Shares, should any be issued on November 15, 2023, will be entitled to receive floating rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of the Bank and subject to the provisions of the Bank Act (Canada). The dividend rate for the three-month period commencing on November 16, 2023, and ending on February 15, 2024, will be 7.93%, being equal to the sum of the 90-day Government of Canada Treasury Bill yield (5.16%) plus 2.77%, calculated on the basis of actual number of days elapsed in such quarterly floating rate period divided by 365, as determined in accordance with the terms of the Series 43 Shares.
Holders of the Series 42 Shares have, subject to certain conditions, the right to convert all or part of their Series 42 Shares on a one-for-one basis into Series 43 Shares on November 15, 2023.
Beneficial owners of Series 42 shares who wish to exercise their conversion right should communicate as soon as possible with their broker or other nominee and ensure that they follow their instructions in order to meet the deadline to exercise such right, which is October 31, 2023, at 5:00 p.m. (EDT).
Caution Regarding Forward-Looking Statements
Certain statements in this press release are forward-looking
statements. These statements are based on a number of assumptions
and are subject to risk factors, inherent risks and uncertainties,
many of which are beyond National Bank's control and the impacts of
which are difficult to predict. Except as required by law, National
Bank does not undertake to update any forward-looking statements,
whether written or oral, that may be made from time to time, by it
or on its behalf. The forward-looking information contained in this
press release is presented for the purpose of interpreting the
information contained herein and may not be appropriate for other purposes.
About National Bank of Canada
With $426 billion
in assets as at July 31, 2023, National Bank of Canada , together
with its subsidiaries, forms one of Canada's leading integrated
financial groups. The Bank has approximately 30,000 employees in
knowledge-intensive positions and has been recognized numerous times
as a top employer and for its commitment to diversity. Its
securities are listed on the Toronto Stock Exchange (TSX: NA).
Follow the Bank’s activities at nbc.ca or via social media.
Information:
Marie-Pierre Jodoin
Senior Manager – Public Affairs and Corporate Social
Responsibility
National Bank of Canada