NAB SUBORDINATED NOTES II (NABPE)
| Minimum Investment | $10,000 |
| Expected Close | 21/03/2017 |
Wealth Focus has secured access to an allocation of NAB Subordinated Notes 2 IPO.
Investors looking to apply for an allocation will need to contact us on 1300 559 869 by close of business today.
Allocations may still be available after this date but will be distributed on a first come first served basis
NAB Subordinated Notes II
The latest fixed income hybrid has just been launched from National Australia Bank offering an indicative yield of 3.97%-4.07%pa.
Although a margin of 2.2% over BBSW is seemingly skinny, this is in line with the secondary wholesale market. We expect that the lack of longer term listed issuance and the demand from rollovers in NAB Subordinated Notes Issue 1 (NABHB), means NABPE is likely to be scarce and may result in a premium.
Our view is that NABPE is priced in line with the market for a 6 year period, there are few alternatives for lower risk hybrid securities and the lower yield of 3.97%pa reflects the reduced risk. That being said, we feel that those who are comfortable with greater risk, would do well to consider the higher risk bank hybrids such as NABPD and ANZPG.
- Download a prospectus
- Download a fact sheet
- Research
- Presentation
- Webinar – An Introduction to Fixed Income
Call us on 1300 559 869 to ask us to secure an allocation to either the new issue or rollover offer.
Key Features
- Broker firm offer – Our allocation through the broker firm offer means investors are more likely to achieve their desired allocation without waiting for the shareholder offer (there is no customer or general offer).
- Limited Offer – The offer is to raise $750 Million, with the ability to raise more or less. The Notes will be traded on the ASX.
- Income – NAB Subordinated Notes II provide holders with quarterly unfranked distributions.
- Unfranked Income – Investors often overlook that returns quoted on fixed income include the franking credits. Unfranked payments are more attractive, avoiding the need to wait until the end of the tax year to claim back the franking.
- High level of income – The indicative distribution rate is 2.2%-2.3% over the 90 day Bank Bill Swap Rate (1.77% – 09/02/17) for an indicative rate of 3.97%-4.07% pa.
- Minimum investment – $10,000 (this is a Wealth Focus minimum)
- Issue Price – $100
Find out more
If you would like further information on NAB Subordinated Notes 2 Offer, please click on the links below:
- Fact sheet
- Prospectus
- Presentation
- Research
- View our online webinar – An Introduction to Fixed Income
Please call us on 1300 559 869 to ask us to secure an allocation.
What do we get paid?
Wealth Focus will receive a payment of up to 1% plus GST of the amount invested. This commission is paid by the product issuer and is NOT an additional charge to the investor.
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