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MONTREAL, April 17,
2023 /CNW/ - Further to its announcement of
April 4, 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 40 Non-Viability
Contingent Capital (NVCC) (the "Series 40 Shares") and the
Non-Cumulative Floating Rate First Preferred Shares, Series 41
(NVCC) (the "Series 41 Shares").
Holders of Series 40 Shares, should any remain outstanding after
May 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 May 16, 2023, and ending on May 15, 2028, will be
5.818%, being equal to the sum of the five-year
Government of Canada Bond yield (3.238%) plus 2.58%, as determined
in accordance with the terms of the Series 40 Shares.
Holders of Series 41 Shares, should any be issued on
May 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 May 16,
2023, and ending on August 15,
2023, will be 7.017%, being equal to the sum of the 90-day
Government of Canada Treasury Bill yield (4.437%) plus 2.58%,
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 41 Shares.
Holders of the Series 40 Shares have, subject to certain
conditions, the right to convert all or part of their Series 40
Shares on a one-for-one basis into Series 41 Shares on May 15, 2023.
Beneficial owners of Series 40 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 May 1, 2023, at 5:00 p.m. (EDT).
About National Bank of Canada
With $418 billion in assets as at January 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 such
as Facebook, LinkedIn and Twitter.
SOURCE National Bank of Canada