Press Releases

National Bank of Canada announces a $400 million issue of innovative Tier 1 Capital

Montreal, 16 January 2008 -

National Bank of Canada (“National Bank”) announced today that NBC Asset Trust and National Bank have entered into an agreement with a syndicate of underwriters to issue $400 million of Trust Capital Securities – Series 1 (“NBC CapS II – Series 1”). These securities will carry a fixed annual yield of 7.235%, payable semi-annually on a non-cumulative basis until June 30, 2018 and, thereafter, will carry a yield determined on the basis of the bankers’ acceptance rate plus 3.79%. The offering is expected to close on January 22, 2008.

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

About National Bank
National Bank 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 $113 billion in assets and, together with its subsidiaries, employs 16,863 people. National Bank’s securities are listed on the Toronto Stock Exchange (NA:TSX). For more information, visit National 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