NEW ISSUE: NATIONAL AUSTRALIA BANK SGD TIER 2 – IPG: 4.30% AREA
Issuer: National Australia Bank Limited (“NAB”)
Issuer Ratings: Aa2(Moody’s,stable), AA-(S&P,stable), AA-(Fitch,stable) Issue Ratings: A3 by Moody’s, BBB+ by S&P
Security Description: Tier 2 Fixed Rate Subordinated Notes (the “Subordinated Notes”)
Format: Reg S, Registered Form, off NAB’s U.S.$100bn GMTN Programm
Ranking: The Subordinated Notes are direct, unsecured obligations of NAB and rank in a Winding Up of NAB behind all claims of Senior Creditors, pari passu among themselves, pari passu with Equal Ranking Instruments and ahead of Junior Ranking Instruments. The Subordinated Notes are liable to be mandatorily converted into Ordinary Shares of NAB in the event of non-viability of NAB.
Currency: SGD
Issue Size: SGD [●]MM
Tenor: 12-year Non-Call 7-year
Price Guidance: [●]%
Issue Price: [●]%Interest
Format: Fixed rate of [●]% until [●] May 2023; thereafter, if not called, a one time reset for the remaining five years at the five-year SGD SOR rate on the second Reset Business Day before [●] May 2023 plus Margin of [●]bps, payable semi-annually
Maturity Date: [●] May 2028
Settlement Date: [●] May 2016
Optional Redemption Date: Issuer call option on [●] May 2023 at par (one-time call, in whole and not in part), and also redemption upon tax and/or regulatory event, each subject to prior written APRA approval
Conversion: If a Non-Viability Trigger Event occurs, NAB must immediately convert some or all of the principal amount of the Subordinated Notes subject to, and in accordance with, the Conditions.
Non-Viability Trigger Event: A Non-Viability Trigger Event occurs when APRA has provided a written determination (Non-Viability Determination) to NAB that: (a) the conversion or write-off of Relevant Capital Instruments of NAB is necessary because without the conversion or write-off, APRA considers that NAB would become non-viable; or (b) without a public sector injection of capital into, or equivalent capital support with respect to, NAB, APRA considers that NAB would become non-viable.
Denominations: SGD250,000
Governing Law: English, except in relation to subordination, conversion or write-off provisions of the Subordinated Notes which will be governed in accordance with the laws of the State of Victoria and the Commonwealth of Australia
Listing: The Luxembourg Stock Exchange’s Euro MTF Market Settlement: Euroclear / Clearstream
Selling restrictions: As per Offering Circular dated 19 November 2015, as supplemented by the supplements dated 17 February 2016 and 9 May 2016, including the Singapore selling restrictions under Sections 274
Comment
3 bonds in 2 days ? Who will be the last bond standing ?
Worthwhile pointing out that this NAB sub’s best comparable would be DBS 3.8% 2028 (callable 2023) issued in Jan this year and has the same ratings.
Times are best for the swap trader who prices at 4.15% instead of 4.3%. Rates have fallen 0.1% on just 2 offshore bond issues totaling less than a billion (sigh… as we said before MAS Notice Section 757… https://tradehaven.net/the-singapore-bond-market-interview/)