National Bank of Canada launches new programs

In order to establish a Medium Term Notes Program, the National Bank of Canada today disclosed that it had filed a prospectus supplement to a short form base prospectus dated August 17, 2020, with the various securities regulatory bodies across all of Canada’s provinces and territories.

The Bank also revealed its plans to issue Non-Viability Contingent Capital (NVCC) Medium Term Notes (MTNs) through its MTN Program for an aggregate principal amount of $750 million, due on August 16, 2032, at an interest rate of 5.426%. Through a dealer syndicate operated by National Bank Financial Inc., the Notes will be issued and sold.

On July 25, 2022, the Notes are anticipated to be released, and they will expire on August 16, 2032. Up until August 16, 2027, interest on the Notes will be paid semi-annually at a rate of 5.426% per year. Thereafter, interest will be paid quarterly at a variable rate equal to Daily Compounded CORRA + 2.32%.

On or after August 16, 2027, the Bank may, at its discretion, redeem the Notes in whole or in part at par plus accrued and unpaid interest upon giving holders not less than 10 nor more than 60 days advance notice and with the prior permission of the Superintendent of Financial Institutions (Canada). The money received by the Bank from the sale of the Notes will be deposited in its general funds and used for standard banking operations.

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