National Bank of Canada (the “Bank”) today announced the filing of a
prospectus supplement to a short form base prospectus dated November
21, 2016 with the various securities regulatory authorities in all
provinces of Canada to establish a Medium Term Notes Program (the “MTN
Program”). The Bank also today announced that it intends to issue $750
million aggregate principal amount of 3.183% Medium Term Notes due
February 1, 2028 (Non-Viability Contingent Capital (NVCC))
constituting subordinated indebtedness of the Bank through its MTN
Program (the “Notes”). The Notes will be issued and sold through a
dealer syndicate led by National Bank Financial Inc.
The Notes are expected to be issued on February 1, 2018 and will
mature on February 1, 2028. Interest on the Notes will be paid
semi-annually at 3.183% per annum until February 1, 2023 and
thereafter at a floating rate equal to the 3-month CDOR plus 0.72%
The Bank may, at its option, with the prior approval of the
Superintendent of Financial Institutions (Canada), redeem the Notes on
or after February 1, 2023, in whole or in part, at par plus accrued
and unpaid interest on not less than 30 nor more than 60 days’ prior
notice to holders. Net proceeds from the issuance of the Notes will be
used for general corporate purposes and added to the Bank’s capital base.
The Notes have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, or under any state securities
laws, and may not be offered, sold, directly or indirectly, or
delivered within the United States and its territories and possessions
or to, or for the account or benefit of, United States persons except
in certain transactions exempt from the registration requirements of
such Act. This press release shall not constitute an offer to sell or
a solicitation to buy securities in the United States.
Caution Regarding Forward-Looking Statements
This press release includes certain forward-looking statements.
These statements are inherently subject to significant risks,
uncertainties and changes in circumstances, many of which are beyond
the control of the Bank. Except as required by law, the 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 $246 billion in
assets as at October 31, 2017, National
Bank of Canada, together with its subsidiaries, forms one of
Canada's leading integrated financial groups. It has more than
21,000 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 such as Facebook,