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NATIONWIDE BUILDING SOCIETY

Capital/Financing Update Aug 1, 2018

4690_rns_2018-08-01_d6cff77a-e986-4e9a-8510-a9d13d75b0a4.pdf

Capital/Financing Update

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FINAL TERMS

MiFID II product governance / Professional investors and ECPs only target market – Solely for the purposes of the manufacturer's product approval process, the target market assessment in respect of the Notes has led to the conclusion that: (i) the target market for the Notes is eligible counterparties and professional clients only, each as defined in Directive 2014/65/EU (as amended, "MiFID II"); and (ii) all channels for distribution of the Notes to eligible counterparties and professional clients are appropriate. Any person subsequently offering, selling or recommending the Notes (a "distributor") should take into consideration the manufacturer's target market assessment; however, a distributor subject to MiFID II is responsible for undertaking its own target market assessment in respect of the Notes (by either adopting or refining the manufacturer's target market assessment) and determining appropriate distribution channels.

Prohibition of sales to EEA retail investors – The Notes are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the European Economic Area ("EEA"). For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of MiFID II; or (ii) a customer within the meaning of Directive 2002/92/EC (as amended, the "Insurance Mediation Directive"), where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II. Consequently no key information document required by Regulation (EU) No 1286/2014 (the "PRIIPs Regulation") for offering or selling the Notes or otherwise making them available to retail investors in the EEA has been prepared and therefore offering or selling the Notes or otherwise making them available to any retail investor in the EEA may be unlawful under the PRIIPs Regulation.

July 31, 2018

Nationwide Building Society

Legal Entity Identifier (LEI): 549300XFX12G42QIKN82

\$1,000,000,000 Fixed-to-Floating Rate Senior Non-Preferred Notes due August 1, 2024 issued pursuant to its \$20,000,000,000 Senior and Subordinated Medium-Term Note Program

PART A – CONTRACTUAL TERMS

Terms used herein shall be deemed to be defined as such for the purposes of the Terms and Conditions set forth in the Base Prospectus dated 26 June, 2018 which constitutes a base prospectus for the purposes of the Prospectus Directive (the Base Prospectus). This document constitutes the Final Terms of the Notes described herein for the purposes of Article 5.4 of the Prospectus Directive and must be read in conjunction with the Base Prospectus. Full information on the Issuer and the offer of the Notes is only available on the basis of the combination of these Final Terms and the Base Prospectus. The Base Prospectus has been published on the website of the London Stock Exchange through a regulatory information service (http://www.londonstockexchange.com/exchange/news/market-news/marketnews-home.html).

TYPE OF NOTE

1. Status of the Notes: Senior Non-Preferred
(a) Senior Non-Preferred Notes: Applicable
Waiver of Set-off: Applicable
(b) Senior Non-Preferred Notes: Restricted
Events of Default:
Applicable
(c) Senior Non-Preferred Notes: Gross-up
of principal:
Applicable
2. Interest Basis: Combination
3. Change of Interest Rate Basis: Fixed/Floating Rate
DESCRIPTION OF THE NOTES
4. (a) Series Number: 2018-3
(b) Tranche Number: 1
5. (a) Nominal Amount of Notes to be issued: \$1,000,000,000
(b) Aggregate nominal amount of Series (if
more than one issue for the Series):
Not Applicable
(c) Specified Currency: US dollars (\$)
(d) Currency Determination Agent: Not Applicable
(e) Specified Denomination(s): \$200,000 and integral multiples of \$1,000 in excess
thereof
6. Issue Price: 100.000%
7. Issue Date: 1 August 2018
8. Original Issue Date: 1 August 2018
9. Interest Commencement Date: 1 August 2018
10. Automatic/optional conversion from one Interest
Basis to another:
4.363% per annum Fixed Rate from (and including) the
Interest Commencement Date to (but excluding) 1 August
2023 (the "Fixed Rate Period") and 3 month LIBOR +
1.392% per annum from (and including) 1 August 2023 to
(but excluding) the Maturity Date (the "Floating Rate
Period")
11. Additional Business Center(s): London

PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE

12. Fixed Rate Note Provisions: Applicable in respect of the Fixed Rate Period

EXECUTION VERSION

(a) Fixed Rate(s) of Interest: 4.363% per annum payable in arrear on each Fixed
Interest Date
(b) Interest Payment Date(s): 1 February and 1 August in each year from (and
including) 1 February 2019 to (and including) 1 August
2023
(c) Day Count Fraction: 30/360
(d) Business Day Convention: Following Business Day
(i)
Adjusted:
Not Applicable
(ii)
Non-Adjusted:
Applicable
(e) Calculation Agent responsible for
calculating the amount of interest (if not
the Agent):
Not Applicable
(f) Determination Date(s): Not Applicable
13. Zero Coupon Note Provisions: Not Applicable
14. Floating Rate Note Provisions: Applicable in respect of the Floating Rate Period
(a) Calculation Agent responsible for
calculating the Interest Rate and Interest
Amount (if not the Agent):
Not Applicable
(b) Interest Period(s) or specified Interest
Payment Date(s):
1 November 2023, 1 February 2024, 1 May 2024 and 1
August 2024
(c) Business Day Convention: Modified Following Business Day
(i)
Adjusted:
Applicable
(ii)
Non-Adjusted:
Not Applicable
(d) First Interest Payment Date: 1 November 2023
(e) Interest Determination Date and
Calculation Date:
The Interest Determination Date will be the second
London Business Day prior to the start of each Interest
Period and the Calculation Date will be the Interest
Determination Date
(f) Interest Rate Basis/Bases: LIBOR
(g) Designated CMT Reuters Page: Not Applicable
(h) Designated EURIBOR Page: Not Applicable
(i) Designated LIBOR Currency: Not Applicable
(j) Designated LIBOR Page: LIBOR 01
(k) Initial Interest Rate: Floating Rate that is determined in relation to the Interest
Period commencing 1 August 2023

EXECUTION VERSION

15.

16.

(1) Initial Interest Reset Date: 1 November 2023
(m) Interest Reset Period: Quarterly
(n) Interest Reset Dates: 1 November 2023, 1 February 2024 and 1 May 2024
$\circ$ Index Maturity: Three months
(p) Designated CMT Maturity Index: Not Applicable
(q) $Margin(s)$ : plus 1.392% per annum
(r) Minimum Interest Rate (if any): Not Applicable
(s) Maximum Interest Rate (if any): Not Applicable
(t) Day Count Fraction: Actual/360
Reset Note Provisions: Not Applicable
Benchmark Replacement: Applicable

PROVISIONS REGARDING REDEMPTION/MATURITY

17. Maturity Date: 1 August 2024
18. Redemption at Issuer's option: Applicable
(a) Early Redemption Date(s): 1 August 2023
(b) Redemption Price of each Note: \$1,000 per Note of \$1,000 Specified Denomination
(c) Notice Periods: Minimum period: 15 days
Maximum period: 30 days
19. (a) Senior Non-Preferred Notes: Loss
Absorption Disqualification Event
Redemption:
Applicable
(b) Loss Absorption Disqualification Event: Full or Partial Exclusion
(c) Senior Non-Preferred Notes:
Substitution and Variation:
Applicable
20. Repayment at holder's option: Not Applicable
21. Minimum Denomination for early
redemption/repayment:
The entire outstanding principal amount of the Notes at
the applicable date
22. Regulatory Event (subordinated notes only): Not Applicable
Signed on behalf of NATIONWIDE BUILDING SOCIETY

Signed on behalf of NATIONWIDE BULLERNO COMMENTE DELTA
By: ....................................

PART B – OTHER INFORMATION

1. LISTING AND ADMISSION TO TRADING

(a) Listing and Admission to trading: London Stock Exchange plc
(b) Estimate of total expenses related to
admission to trading:
\$5,000
2. RATINGS
Ratings: The Notes to be issued had been rated:
Moody's Investors Service Limited: Baa1
Limited: Standard & Poor's Credit Market Services Europe BBB+
Fitch Ratings Ltd.: A

3. INTERESTS OF NATURAL AND LEGAL PERSONS INVOLVED IN THE ISSUE

Save for any fees payable to the Placement Agent(s), so far as the Issuer is aware, no person involved in the issue of the notes has an interest material to the offer. The Placement Agent(s) and their affiliates have engaged, and may in the future engage, in investment banking and/or commercial banking transactions with, and may perform other services for, the Issuer and its affiliates in the ordinary course of business.

4. YIELD (Fixed Rate Notes only)

Indication of yield: 4.363% per annum in respect of the Fixed Rate Period

5. OPERATIONAL INFORMATION

(a) CUSIP: 144A: 63861VAC1
Reg S: 63861WAC9
(b) ISIN Code: 144A:US63861VAC19
Reg S: US63861WAC91
(c) Common Code: 144A 186161483
Reg S: 186161505
(d) CFI: Not Applicable
(e) FISN: Not Applicable
(f) Any clearing system(s) other than The
Depository Trust Company and the
relevant identification number(s):
Not Applicable
(g) Names and addresses of additional
Paying Agent(s) (if any):
Not Applicable
(h) Relevant Benchmarks:

LIBOR is provided by ICE Benchmark Administration

Limited. As of the date hereof, ICE Benchmark Administration Limited appears in the register of administrators and benchmarks established and maintained by ESMA pursuant to Article 36 (Register of administrators and benchmarks) of the Benchmarks Regulation.

6. DISTRIBUTION

(a) Prohibition of Sales to EEA Retail Investors:

Applicable

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