NATIONAL BANK OF CANADA

NATIONAL BANK OF CANADA

February 24, 2005 10:33 ET

National Bank Announces New Preferred Share Issue


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NATIONAL BANK OF CANADA

TSX SYMBOL: NA

FEBRUARY 24, 2005 - 10:33 ET

National Bank Announces New Preferred Share Issue

MONTREAL, QUEBEC--(CCNMatthews - Feb. 24, 2005) - National Bank (TSX:NA)
today announced a domestic public offering of $200 million of
Non-Cumulative Fixed Rate First Preferred Shares Series 16 (the
"Preferred Shares").

The Bank will issue 8 million Preferred Shares priced at $25 per share
and holders will be entitled to receive non-cumulative preferential
quarterly dividends in the amount of $0.303125 per share, to yield 4.85
per cent annually.

Subject to regulatory approval, on or after May 15, 2010 the Bank may
redeem the Preferred Shares in whole or in part at a declining premium.

The net proceeds of this offering will be used for general business
purposes and will qualify as Tier 1 capital of the Bank.

The offering will be underwritten by a syndicate led by National Bank
Financial Inc. The expected closing date is March 15, 2005.

The Preferred Shares have not been and will not be registered under the
United States Securities Act of 1933, as amended, and may not be
offered, sold 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 release does not constitute
an offer to sell or a solicitation to buy such securities in the United
States.

About the National Bank of Canada

National Bank of Canada is an integrated group which provides
comprehensive financial services to consumers, small and medium-sized
enterprises and large corporations in its core market, while offering
specialized services to its clients elsewhere in the world. The National
Bank offers a full array of banking services, including retail,
corporate and investment banking. It is an active player on
international capital markets and, through its subsidiaries, is involved
in securities brokerage, insurance and wealth management as well as
mutual fund and retirement plan management. The National Bank has assets
of more than $90 billion and, together with its subsidiaries, employs
close to 17,000 people. The Bank's securities are listed on the Toronto
Stock Exchange (NA:TSX). For more information, visit the Bank's website
at www.nbc.ca.

Information: (The telephone number provided below is for the exclusive
use of journalists and other media representatives.)

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    National Bank of Canada
    Denis Dube
    Manager, Public Relations Department
    (514) 394-8644