Press Releases

National Bank of Canada announces a $225 million issue of Innovative Tier 1 Capital

Montreal, 8 June 2006 -

National Bank of Canada (“National Bank”) announced today that NBC Capital Trust has filed a final prospectus with the securities commissions of all provinces of Canada with respect to a $225 million offering of Trust Capital Securities – Series 1 (“NBC CapS – Series 1”).  These securities will carry a fixed annual yield of 5.329%, payable semi-annually on a non-cumulative basis until June 30, 2016 and, thereafter, will carry a yield determined on the basis of the bankers’ acceptance rate plus 1.50%.  The offering is expected to close on June 15, 2006.

Subject to receipt of final approval from the regulatory authorities, the NBC CapS – Series 1 will constitute Tier 1 capital of National Bank. This source of financing will also allow National Bank to optimize its capital structure. The NBC CapS – Series 1 will be offered by a syndicate of underwriters composed of National Bank Financial Inc., acting as lead underwriter, and CIBC World Markets Inc., HSBC Securities (Canada) Inc., Merrill Lynch Canada Inc., BMO Nesbitt Burns Inc., RBC Capital Markets, Scotia Capital Inc., TD Securities Inc., J.P. Morgan Securities Canada Inc. and Laurentian Bank Securities Inc.

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 $110 billion in assets and, together with its subsidiaries, employs 16,955 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):

Denis Dubé
Senior Director – Public Relations
National Bank of Canada
Tel.: (514) 394-8644