Mr. Jake Lawrence reports

SCOTIABANK ANNOUNCES COMPLETION OF NVCC PREFERRED SHARES OFFERING

Bank of Nova Scotia has completed the domestic public offering of non-cumulative five-year rate-reset preferred shares Series 38 (non-viability contingent capital (NVCC)).

Scotiabank sold 20 million preferred shares Series 38 at a price of $25.00 per share, and holders will be entitled to receive a non-cumulative quarterly fixed dividend for the initial period ending Jan. 26, 2022, yielding 4.85 per cent per annum, as and when declared by the board of directors of Scotiabank. The gross proceeds of the offering were $500-million.

The offering was made through a syndicate of underwriters led by Scotia Capital Inc. The preferred shares Series 38 commenced trading on the Toronto Stock Exchange today under the symbol BNS.PR.H.

On Jan. 27, 2022, and on Jan. 27 every five years thereafter, Scotiabank may, at its option, with the prior approval of the Superintendent of Financial Institutions (Canada), redeem all or any number of the then outstanding preferred shares Series 38 at a redemption price which is equal to par. Thereafter, the dividend rate will reset every five years at a rate equal to 4.19 per cent over the five-year government of Canada bond yield. Holders of preferred shares Series 38 will, subject to certain conditions, have the right to convert all or any part of their shares to non-cumulative floating rate preferred shares Series 39 (NVCC) of Scotiabank on Jan. 27, 2022, and on Jan. 27 every five years thereafter.

Holders of the preferred shares Series 39 will be entitled to receive a non-cumulative quarterly floating dividend at a rate equal to the three-month government of Canada treasury bill yield plus 4.19 per cent, as and when declared by the board of directors of Scotiabank. Holders of preferred shares Series 39 will, subject to certain conditions, have the right to convert all or any part of their shares to preferred shares Series 38 on Jan. 27, 2027, and on Jan. 27 every five years thereafter.