NAB is looking to raise $750m (with the ability to raise more or less) at the margin over bank bills of 4-4.2% through NAB Capital Notes 3. The funds are to be used for general corporate purposes.

The notes are convertible and subordinated, and scheduled to pay quarterly, floating rate distributions in cash subject to the satisfaction of certain conditions. Distributions are expected to be fully franked.The distribution rate is equal to the sum of the Bank Bill Rate plus a Margin (expected to be in the range of 4.00% to 4.20%), adjusted for NAB’s tax rate. NAB Capital Notes 3 do not have a fixed maturity date for repayment and holders do not have a right to request or require NAB to Convert, Redeem or Resell NAB Capital Notes 3. Therefore, it is possible that NAB Capital Notes 3 could remain on issue indefinitely and the Face Value will not be repaid. However, there are certain events that could occur while NAB Capital Notes 3 are on issue, which may result in NAB Capital Notes 3 being Converted into NAB Ordinary Shares, Redeemed or Resold for cash, or Written Off.

Full details of those events and the NAB Capital Notes 3 are contained in the NAB Capital Notes 3 Prospectus issued by NAB on 11 February 2019 (Prospectus).

More details can be found at  www.nab.com.au/ncn3offer