By Bell Potter
National Australia Bank (NAB) has given notice to security holders of NAB Subordinated Notes 2 (NSN2) that it has elected to redeem all outstanding NSN2 in accordance with the terms and conditions of issuance. NAB has received written approval from APRA with regards to the redemption request.
We anticipate the issue will not be replaced by a successive retail T2 sub debt series; as NAB can utilised the more efficient, less expensive over-the-counter wholesale market to issue debt (including T2 securities).
For each NABPE held on the Record Date of 12 September 2023, security holders will receive a cash payment of $100 (being the face value) plus $1.6429 interest in respect of the interest period from (and including) 20 June 2023 to (but not including) 20 September 2023. All payments will be made subject to the Terms. NABPE is a debt security hence there are no franking credits attached to this issue.
NABPE were issued back on 20 March 2017, with $943.2m outstanding.
