By Devika Patel
Knoxville, Tenn., Sept. 2 – National Bank of Canada privately placed C$500 million of 4.3% 60-year limited recourse capital notes, series 1 (Ba1(hyb)/BB+/DBRS: BBB), according to a press release. The notes were sold via a group of agents led by National Bank Financial Inc.
The coupon will initially be 4.3% until Nov. 15, 2025. After that, interest will reset every five years and accrue at a rate equal to the prevailing five-year Government of Canada Yield plus 394.3 basis points.
Proceeds will be added to National Bank’s general funds and be used for general banking purposes.
The bank is based in Montreal.
| Issuer: | National Bank of Canada
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| Description: | Limited recourse capital notes, series 1
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| Amount: | C$500 million
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| Maturity: | Nov. 15, 2080
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| Agents: | National Bank Financial Inc. (lead)
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| Coupon: | 4.3% until Nov. 15, 2025; after that, at Government of Canada Yield plus 394.3 bps
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| Call features: | From Oct. 15 to and including Nov. 15, commencing in 2025 and every five years after that
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| Trade date: | Sept. 1
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| Settlement date: | Sept. 9
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| Ratings: | Moody’s: Ba1(hyb)
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| S&P: BB+
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| DBRS: BBB
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| Distribution: | Private placement
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