Not for distribution to U.S. news wire services or for dissemination in the United States.
National Bank of Canada (the “Bank”) today announced the filing of a prospectus supplement to a short form base prospectus dated August 17, 2020, with the various securities regulatory authorities in all provinces and territories of Canada to establish a Medium Term Notes Program (the “MTN Program”). The Bank also announced that it intends to issue Medium Term Notes for an aggregate principal amount of $750 million at an interest rate of 5.426% and maturing on August 16, 2032 (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 July 25, 2022 and will mature on August 16, 2032. Interest on the Notes will be paid semi-annually at 5.426% per annum until August 16, 2027, and thereafter at a floating rate equal to Daily Compounded CORRA plus 2.32% payable quarterly.
The Bank may, at its option, with the prior approval of the Superintendent of Financial Institutions (Canada), redeem the Notes on or after August 16, 2027, in whole or in part, at par plus accrued and unpaid interest on not less than 10 nor more than 60 days’ prior notice to holders. The proceeds to the Bank from the sale of the Notes will be added to the Bank’s general funds and will be utilized for general banking purposes.
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.