Welcome

NAB has prepared this guide for those considering investing in Hybrids issued by a Bank. NAB hopes this guide will help investors understand how Hybrids work, their key features and some of the key risks of investing in them.

Hybrids are complex securities and may not be suitable for all investors. The Design and Distribution Obligations Regime requires a Bank to issue a Target Market Determination in relation to any Hybrid it proposes to issue to retail investors on or after 5 October 2021. A Target Market Determination for a Hybrid will describe who the Hybrid may be suitable for based on likely needs, objectives and financial situation (target market), and will also set out who can distribute the Hybrid, how they can do this and situations when the Bank may need to review the target market.

Investing in a Hybrid

Hybrids may be offered to a range of investors, including retail investors and local or foreign institutional investors. When a Bank makes an offer of Hybrids to retail investors, it will publish a Prospectus (and a Target Market Determination as noted above).

Any investment in a Hybrid carries a variety of risks for the Hybrid investor. These include risks relating to the features of the investment and risks relating to the performance of the Bank. The risks associated with Hybrids could result in the loss of your investment and associated income, and the investment performance of Hybrids is not guaranteed.

Each Hybrid is different. If you are considering investing in a Hybrid, it is important that you read the relevant Target Market Determination (if available) and the Prospectus carefully and in full before you invest. A Target Market Determination does not replace the Prospectus. You should continue to refer to the Prospectus before deciding whether or not to invest in a Hybrid. You should also seek advice from your financial adviser or other professional adviser, which takes into account your particular investment objectives and circumstances.

Using this guide

This guide uses a number of defined terms to refer to specific concepts. Defined terms are indicated by capital letters at the start of a word. You can find a list of the defined terms used in this guide in the Glossary.

Scope of this guide

This guide is for Australian retail investors and provides general information about the key features and risks associated with an investment in ASX-listed Hybrids (including both Tier 1 Hybrids and Tier 2 Notes) issued after 1 January 2013. It is specific to Hybrids issued by Banks and does not apply to Hybrids issued by other types of issuers, such as insurance companies or other corporates.

This guide does not relate to any particular Hybrid offer made by NAB or any other Bank and does not take into account your objectives, financial situation or needs. It does not contain or constitute investment advice or an offer of any securities and is not a recommendation or endorsement of Hybrids generally or any particular Hybrid (whether issued by NAB or any other Bank).

Due to legal restrictions, access to this website is only available to residents of Australia from within Australia.

By proceeding you confirm that you are a resident of Australia accessing this website from within Australia and you represent, warrant and agree that you are not a "U.S. person" (as defined in Regulation S under the United States Securities Act of 1933) nor are you acting for the account or benefit of a U.S. person.