Press Releases

National Bank of Canada announces $500 million offering of Medium Term Notes

Montreal, 18 October 2005 -

National Bank of Canada (the “Bank”) announced today that it intends to issue Series 4 Medium Term Notes (subordinated indebtedness) for gross proceeds of CAD$500 million. The net proceeds from the issuance of the Notes will be added to the general funds of the Bank and will be used for general banking purposes. The offering is scheduled to close on November 2, 2005.

The Bank will issue CAD$500 million of 4.70% Series 4 Notes, which will be dated November 2, 2005 and will mature on November 2, 2020. Interest on the Notes will be paid semi-annually at 4.70% per annum until November 2, 2015 and thereafter will be equal to the 90-day Bankers’ Acceptance Rate plus 1% and will be payable quarterly.

The Series 4 Notes have been assigned a rating of A with a stable trend from Dominion Bond Rating Services Limited, A- from Standard & Poor’s Rating Service and A2 with a stable outlook from Moody’s Investors Service, Inc.

The offering of the Series 4 Notes is made pursuant to the Short Form Base Shelf Prospectus dated March 4, 2004, a Prospectus Supplement dated October 18, 2005 and a Pricing Supplement relating to the Series 4 Notes which will be filed by the Bank with the securities regulatory authorities in all provinces of Canada. National Bank Financial Inc. acted as lead agent for the offering and CIBC World Markets Inc. acted as co-lead agent. The other members of the group are RBC Capital Markets, BMO Nesbitt Burns Inc., HSBC Securities (Canada) Inc., Merrill Lynch Canada Inc., Scotia Capital Inc., TD Securities Inc., Laurentian Bank Securities Inc., Casgrain and Company Limited and J.P. Morgan Securities Canada Inc.

The Series 4 Notes have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell in the United States.

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 close to $110 billion in assets and, together with its subsidiaries, employs 17,049 people. The Bank’s securities are listed on the Toronto Stock Exchange (NA:TSX). For more information, visit the Bank’s website at

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

Josée Lagacé
Public Relations Department
National Bank of Canada
Tel.: (514) 394-6500