National Income Securities

National Income Securities are an innovative investment that has been created with the medium to long term Australian investor in mind. National Income Securities are a new form of interest income security, although they are not ordinary shares or bank deposits they are listed on the ASX. National Income Securities comprise two components: a fully paid debt security of $100 (Note); and an unpaid preference share (Preference Share). The two components are stapled together and cannot be traded separately.

They offer an attractive floating rate of interest, payable quarterly in arrears, the interest rate will vary every quarter at the defined Market Rate plus 1.25% per annum. The defined Market Rate is the 90 Day Bank Bill Rate. A key feature of the Income Securities is that they have no maturity date and will not be repayable by the National. To realise your investment you will need to sell them on the ASX at the prevailing market price, or privately.

If you are unclear or uncertain if National Income Securities are a suitable investment, you should consult a stockbroker, accountant, financial planner or other adviser.

The National Income Securities Prospectus has been removed until further notice because it contains references to NAB's credit ratings.  Due to changes to the regulation of credit rating agencies which are in effect from 1 January 2010, NAB may no longer provide access to documents containing references to its credit ratings.

You may be able to obtain a document which references NAB's credit ratings if you are a qualified institutional and/or wholesale investor. To request a copy of a removed document or for any other queries, please contact NAB at capitalandfunding@nab.com.au or via the  Contacts link.

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