The Bank of Nova Scotia (Scotiabank) issued CAD$1.25 billion in 10-year bonds in early July, and announced an interest rate reset on a further CAD$1.25 billion of limited recourse capital notes.
The new bonds are due 1 August, 2036, and have a 4.223% coupon. Funds are expected to be used for general banking purposes.
Scotiabank reported CAD$9.8 billion in revenues for Q2, up 2% quarter-on-quarter and up 7.7% year-on-year.
The Bank of Montreal, Cedar Leaf Capital, CIBC, Federation des caisses Desjardins du Quebec, iA Private Wealth, Manulife Securities, BofA Securities, National Bank Financial, RBC Capital Markets, TD Securities and Wells Fargo were bookrunners for the placement.
Scotiabank has an Aa2 issuer rating from Moody’s, A+ from S&P, AA+ from Fitch Ratings and AA from Morningstar DBRS. All have assigned the bank a stable outlook.
The notes with interest rates being reset are due in 2081 and have a 5.987% annual interest rate, calculated as the Government of Canada yield’s interest rate per annum plus 2.761%. This will be paid quarterly.
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