Press Releases

National Bank of Canada Announces a $350 Million Offering of Innovative Tier 1 Capital

Montreal, 26 June 2008 -

National Bank of Canada (“National Bank”) announced today that NBC Asset Trust, a subsidiary of National Bank, and National Bank have filed a final prospectus with the securities regulatory authorities in each of the provinces of Canada with respect to a public offering of $350 million of Trust Capital Securities – Series 2 (“NBC CapS II – Series 2”) by NBC Asset Trust. These securities will carry a fixed annual yield of 7.447%, payable semi-annually on a non-cumulative basis until June 30, 2020 and, thereafter, will carry a yield determined on the basis of the bankers’ acceptance rate plus 4.09%. The offering is expected to close on June 30, 2008.

The NBC CapS II – Series 2 will be offered by a syndicate of underwriters composed of National Bank Financial Inc., acting as lead underwriter, RBC Dominion Securities Inc., Merrill Lynch Canada Inc., CIBC World Markets Inc., TD Securities Inc., BMO Nesbitt Burns Inc., HSBC Securities (Canada) Inc., Scotia Capital Inc., Laurentian Bank Securities Inc., Casgrain & Company Limited and Desjardins Securities Inc.

Subject to receipt of final approval from the regulatory authorities, the NBC CapS II – Series 2 will constitute Tier 1 capital of National Bank. This source of financing will also allow National Bank to optimize its capital structure. The net proceeds of the offering will be used for general corporate purposes.

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. 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. National Bank has more than $123 billion in assets and, together with its subsidiaries, employs 17,093 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.):

Marie-Claude Lavigne
Senior Advisor, Public Relations Department
National Bank Financial Group
Tel.: 514-394-6500