MONTREAL, Nov. 3, 2016 /CNW Telbec/ - National Bank of
Canada is pleased to announce today, following a successful investor road show in Beijing and Shanghai, that it has issued a first tranche of its Panda Bond
program raising RMB3.5 billion (approximately CAD690 million) in
Mainland China's public bond market. The bond was priced at an annual coupon rate of 3.05% and has a three-year term. This is a
successful and oversubscribed issuance with the help of National Bank of Canada's appointed joint
lead underwriters and bookrunners, namely China Merchants Securities Co. Ltd. Standard Chartered Bank (China) Limited, Agricultural Bank of China Limited, Industrial and Commercial Bank of China Limited and Bank
of China Limited.
On September 23, 2016, People's Bank of China authorized National
Bank of Canada to establish a bond program to issue up to RMB5
billion (approximately CAD1 billion), in the form of bonds commercially known as Panda
Bonds.
National Bank of Canada, one of the six banks of systemic importance in Canada, becomes the first financial institution in North America to access
one of the largest capital markets in the world. It is the first Canadian bank to receive a AAA rating from a Mainland China credit
rating agency, China Chengxin International Credit Rating Co. Ltd.
This issuance represents an important milestone in China's Renminbi and capital markets'
internationalization. National Bank of Canada's Panda Bond is beneficial to further promoting
cooperation in the Canada-China financial area and to deepening
economic and trading relationships between the two countries.
Quotes:
Denis Girouard, Executive Vice-President – Financial Markets and Member of the Office of the
President: "As the leading Canadian Bank in government and infrastructure finance in Canada,
National Bank of Canada has demonstrated an in-depth understanding of global financial markets.
With this inaugural bond offering, our team is proud of breaking into new frontiers. Panda Bonds represent a new diversified
funding source and will help us in supporting Canadian companies doing business in China and
bilateral investment flows".
Vincent Joli-Coeur, Vice-Chairman – Financial Markets: "We have been impressed by the rigorous
and transparent process led by People's Bank of China and Chinese governmental entities throughout
our application. We are thankful to the relevant authorities for helping us to become the first North American bank to access the
Mainland China RMB bond market and it is an honour that our Panda Bond program approval has been announced by Premier Li Keqiang
during his official visit to Canada in September 2016".
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 the Bank, including risks relating to
the timing and completion of any future issuance of RMB Panda Bonds by National Bank of Canada.
Except as required by law, the 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 purpose.
About National Bank of Canada
With $230 billion in assets as at July 31, 2016, National Bank of Canada, together with its subsidiaries, forms one of
Canada's leading integrated financial groups. The Bank has close to 22,000 employees and is widely
recognized as a top employer. The Bank's 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
