National Australia Bank Limited is an international banking group which operates in Australia, New Zealand, Europe, Asia and the United States. The Group offers banking services, credit and access card facilities, leasing, housing and general finance, international and investment banking, wealth and funds management, life insurance and custodian, trustee and nominee services.
With the first call date for the NABPDs fast approaching, National Australia Bank (NAB) has announced this morning that it will, as expected, redeem the NABPDs. It will fund the redemption by launching a new hybrid offer, and NABPD holders will be able to roll their holdings into the new issue, if desired. The NABPDs cease trading on 29 June, so we have a few weeks to decide whether to roll into the new offer. Given the very different operating environment since our last purchase in the Income Portfolio, it’s worthwhile re-examining some of the listed hybrids on offer, so we will use the remaining hold time as an opportunity to research an appropriate replacement holding.
It’s worth noting that the NABPDs will be redeemed for $100 plus an interest payment of $0.914, fully franked. For NABPD holders, be sure to keep an eye out for the recommended replacement within the Income Portfolio over the next few weeks.
