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Further to its announcement of September 20, 2023,
National Bank of Canada (the “Bank”) (TSX: NA) announced today the
dividend rates applicable to the Non-Cumulative 5‑Year Rate Reset
First Preferred Shares, Series 42 Non-Viability Contingent Capital
(NVCC) (the “Series 42 Shares”) and the Non-Cumulative Floating Rate
First Preferred Shares, Series 43 (NVCC) (the “Series 43 Shares”).
Holders of Series 42 Shares, should any remain outstanding after
November 15, 2023, will be entitled to receive fixed-rate
non-cumulative preferential cash dividends on a quarterly basis, as
and when declared by the Board of Directors of the Bank and subject to
the provisions of the Bank Act (Canada). The dividend rate for
the five-year period commencing on November 16, 2023, and ending on
November 15, 2028, will be 7.056%, being equal to the sum of the
five-year Government of Canada Bond yield (4.286%) plus 2.77%, as
determined in accordance with the terms of the Series 42 Shares.
Holders of Series 43 Shares, should any be issued on November 15, 2023, will be entitled to receive floating rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of the Bank and subject to the provisions of the Bank Act (Canada). The dividend rate for the three-month period commencing on November 16, 2023, and ending on February 15, 2024, will be 7.93%, being equal to the sum of the 90-day Government of Canada Treasury Bill yield (5.16%) plus 2.77%, calculated on the basis of actual number of days elapsed in such quarterly floating rate period divided by 365, as determined in accordance with the terms of the Series 43 Shares.
Holders of the Series 42 Shares have, subject to certain conditions, the right to convert all or part of their Series 42 Shares on a one-for-one basis into Series 43 Shares on November 15, 2023.
Beneficial owners of Series 42 shares who wish to exercise their conversion right should communicate as soon as possible with their broker or other nominee and ensure that they follow their instructions in order to meet the deadline to exercise such right, which is October 31, 2023, at 5:00 p.m. (EDT).