Press Releases

National Bank confirms the success of its Global Blue Chip Note by launching a second issue and adding reduced fee options

Montreal, 14 March 2005 -

Spurred by sales of $75 million for the first issue of its Global Blue Chip Note, which ended on March 1, 2005, National Bank has launched a second issue of this popular new product.

“Sales of this note were made via the Bank’s branch network as well as by independent brokers and planners because the note was offered through FundServ,” said Charles Guay, President and Chief Operating Officer of National Bank Securities.

Drawing on this success, National Bank began offering a second issue of the Global Blue Chip Note on March 2, 2005, which will be available until 4:00 p.m. on April 22, 2005. The Global Blue Chip Note provides access to an index made up of 30 of the world’s best companies. The principal of the note, which can be sold on the secondary market before maturity, is fully protected by National Bank if the note is held to maturity*.

Reduced fee options
National Bank is breaking new ground with this second issue by becoming the first financial institution to offer an institutional series featuring lower management fees for larger investments. The details of this issue are summarized below:

 

FundServ code

Minimum investment

Management fee

Investor series

NBC 021

$500

2.95%

Institutional series

NBC 022

$100,000

2.25%

Million series

NBC 023

$1,000,000

1.55%

“With this offering, National Bank has made its Global Blue Chip Note more attractive for wealthy individual and institutional investors who are also looking for investment solutions that both protect principal and offer good potential returns,” explained Mr. Guay.

National Bank Securities is a wholly owned subsidiary of National Bank of Canada. It offers a full range of investment solutions to both individuals and business clients.

*The Principal-Protected Global Blue Chip Note (the “Note”) is a principal-protected investment redeemable at maturity.  The Note offers unlimited return potential over an 8-year term. National Bank of Canada may, at its discretion, redeem the Note on the 4th anniversary of its issue date with a premium of 46.41% representing an annual compound return of approximately 10%. In such a case, the investor will not fully benefit from the appreciation in the value of the benchmark portfolio. Variation in the benchmark index, which corresponds to the variation in the portfolio return, will have a direct impact on the interest payable. It is thus possible that no interest will be paid. A management fee will be charged to the benchmark portfolio, accruing daily and will be deducted monthly in arrears (2.95% per annum for a minimum investment of $500, 2.25% per annum for a minimum investment of $100,000 and 1.55% per annum for a minimum investment of $1,000,000).

About the National Bank of Canada
National Bank of Canada is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. The National Bank offers a full array of banking services, including retail, corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. The National Bank has assets of more than $90 billion and, together with its subsidiaries, employs close to 17,000 people. The Bank’s securities are listed on the Toronto Stock Exchange (NA:TSX). For more information, visit the Bank’s website at
www.nbc.ca.

Information  (The telephone number provided below is for the exclusive use of journalists and other media representatives) :

Denis Dubé
Manager, Public Relations Department
National Bank of Canada
Tel.: (514) 394-8644