National Bank launches a new issue of Class A US Dollar Bearish Notes II
- 100% of principal protected by National Bank at maturity
- Potential return at maturity equal to 165% of the depreciation of the US dollar versus a basket of seven world currencies
- Term of 2.5 years
- No management fees
National Bank is launching a new issue of Class A US Dollar Bearish Notes II. This investment solution is intended for investors who want to diversify their portfolios while taking advantage of the decline of the US dollar against certain international currencies. The notes will be available until June 13, 2006.
The note offers 100% principal protection at maturity and its performance is linked to the deprecation of the US dollar relative to seven world currencies: the Canadian dollar, the Mexican peso, the British pound, the Japanese yen, the Hong Kong dollar, the South Korean won and the Indian rupee.
Notes are priced at $100: the minimum investment is $2,000. At maturity, on December 16, 2008, investors will receive, in addition to their principal, an amount equivalent to 165% of the decline in the US dollar compared to the basket of currencies. For example, if at maturity, the US dollar has depreciated by 10% against the basket, investors will receive a return of 16.5%, or $116.50 per note. If, however, the US dollar has appreciated 10% against the value of the basket, investors will receive their principal in full.
Class A US Dollar Bearish Notes II qualify for Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), Deferred Profit Sharing Plans (DPSPs) and Registered Education Savings Plans (RESPs). They can also be sold before maturity, subject to market conditions and early trading charges.
The Notes can be purchased from National Bank Direct Brokerage at 1-800-363-3511 (toll-free) or (514) 866-6755 (in the Montreal area) and from National Bank Financial at 1-800-361-8838 or (514) 879-3706 as well as through all investment advisors and financial planners in Canada.
This document is for information purposes only and does not constitute an offer to sell or solicitation to buy the above Notes. Principal invested in Class A US Dollar Bearish Notes II is protected at maturity. Any fluctuations in the currencies against the US dollar will have a direct impact on returns at maturity. The Notes may not generate any returns. Investing in the Notes is subject to certain risk factors. Potential investors should consult the information document before investing in the Notes.
About 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. 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. National Bank has more than $105 billion in assets and, together with its subsidiaries, employs 16,993 people. The Bank’s securities are listed on the Toronto Stock Exchange (NA:TSX). For more information, visit the Bank’s website atwww.nbc.ca.
Information (The telephone number provided below is for the exclusive use of journalists and other media representatives):
Senior Director – Public Relations
National Bank of Canada
Tel.: (514) 394-8644