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MONTREAL, Oct. 17,
2023 /CNW/ - 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).
About National Bank of
Canada
With $426 billion in assets as at July 31, 2023, National Bank of Canada, together with its subsidiaries, forms
one of Canada's leading integrated
financial groups. The Bank has
approximately 30,000 employees in
knowledge-intensive positions and has been recognized numerous
times as a top employer and for its commitment to diversity. Its
securities are listed on the Toronto Stock Exchange (TSX: NA).
Follow the Bank's activities at nbc.ca or via
social media.
SOURCE National Bank of Canada