National Bank of Canada Announces Closing of NVCC AT1 Limited Recourse Capital Notes Offering

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./

MONTREAL, Sept. 9, 2020 /CNW Telbec/ - National Bank of Canada ("National Bank") today announced the closing of its previously announced offering of $500 million of 4.300% Limited Recourse Capital Notes, Series 1 (Non-Viability Contingent Capital (NVCC)) (Subordinated Indebtedness) (the "Notes").

The Notes were offered by a group of agents led by National Bank Financial Inc.

Concurrently with the issuance of the Notes, National Bank has also issued Non-Cumulative 5-Year Fixed Rate Reset First Preferred Shares, Series 44 (Non-Viability Contingent Capital (NVCC)) (the "Series 44 Preferred Shares") to be held by Computershare Trust Company of Canada as trustee for a newly-formed trust (the "Limited Recourse Trust"). In case of non-payment of interest on or principal of the Notes when due, the recourse of each Note holder will be limited to that holder's proportionate share of the Limited Recourse Trust's assets, which will consist of Series 44 Preferred Shares except in limited circumstances.

The Notes and the Series 44 Preferred Shares were issued under a prospectus supplement dated September 1, 2020 to National Bank's short form base shelf prospectus dated August 17, 2020.

The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or under any state securities laws, and may not be offered, sold, directly or indirectly, or delivered within the United States of America and its territories and possessions or to, or for the account or benefit of, United States persons except in certain transactions exempt from the registration requirements of such Act. This press release shall not constitute an offer to sell or a solicitation to buy securities in the United States.

Caution Regarding Forward-Looking Statements
This press release includes certain forward-looking statements. These statements are inherently subject to significant risks, uncertainties and changes in circumstances, many of which are beyond the control of National Bank. Except as required by law, National Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time, by it or on its behalf. The forward-looking information contained in this press release is presented for the purpose of interpreting the information contained herein and may not be appropriate for other purposes.

About National Bank of Canada
With $322 billion in assets as at July 31, 2020, National Bank of Canada, together with its subsidiaries, forms one of Canada's leading integrated financial groups. It has more than 26,000 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

Marianne Ratté, Senior Director, Investor Relations, National Bank of Canada, Tel.: [phone]; Marie-Pierre Jodoin, Senior Manager, Public Affairs and Corporate Social Responsibility, National Bank of Canada, Tel.: [phone]

Related Links

https://www.nbc.ca