Ms. Christy Bunker reports

SCOTIABANK ANNOUNCES SUBORDINATED DEBENTURES OFFERING

Bank of Nova Scotia has arranged an inaugural Basel 3-compliant offering of $1.25-billion of 2.58-per-cent subordinated debentures due 2027 pursuant to its June 27, 2014, base-shelf prospectus. The debentures, to be sold through an agency syndicate led by Scotiabank Global Banking & Markets, are expected to be issued on March 30, 2015. Interest will be payable semi-annually from the date of issue until March 30, 2022, at a rate of 2.58 per cent per annum. From March 30, 2022, to maturity on March 30, 2027, the debentures will pay a quarterly coupon at a rate equal to the 90-day bankers acceptance rate plus 1.19 per cent, beginning June 30, 2022.

On or after March 30, 2022, Scotiabank may, at its option, with the prior approval of the Superintendent of Financial Institutions (Canada), in whole at any time or in part from time to time, at a redemption price which is equal to par, plus accrued and unpaid interest, redeem the debentures, on not fewer than 30 nor more than 60 days notice to registered holders.

Net proceeds from this transaction will be used for general banking purposes.

Scotiabank intends to file, in Canada, a pricing supplement to its June 27, 2014, base-shelf prospectus. A copy of this document, as well as the base-shelf prospectus, can be obtained at SEDAR.