Ms. Heather Armstrong reports

SCOTIABANK ISSUES ITS FIRST GREEN BOND IN THE EUROPEAN MARKET FOR EUR 1 BILLION

Scotiabank has issued its inaugural one-billion-euro, five-year senior fixed rate green bond in the European market pursuant to Scotiabank's sustainable issuance framework released on April 5, 2024. Scotiabank intends to allocate, in accordance with the framework, an amount equal to the net proceeds from the EUR green bond offering to finance and/or refinance, in part or in full, new, or existing eligible green assets (as defined in the framework).

The EUR green bond represents the largest green or sustainability bond offering by a Canadian financial or corporate to date. This offering is aligned with Scotiabank's view that financial institutions can play an important role in providing financial products and services that aim to incentivize innovation in a world increasingly affected by climate change.

"This is Scotiabank's fourth green or sustainability labeled benchmark bond, and our first in Europe," said Paul Scurfield, global head, capital markets, global banking and markets at Scotiabank. "We believe it represents a step forward for our sustainable finance program and we are proud to demonstrate Scotiabank's ongoing interest to play a leading role in sustainable finance across our global markets."

The bond was issued under the framework, which replaces the bank's sustainable bond framework released in 2021. Updates to the framework include the expansion of instruments that can be issued to raise sustainable financing, and additional eligible green and social categories (each as defined in the framework) to which such financing can be allocated, including: nuclear energy, circular economy, climate adaptation, and food security and sustainable food systems. The framework received a second party opinion from Moody's Investors Service, which assigned a sustainability quality score of SQS2 (Very Good).

In addition to the EUR green bond, Scotiabank released another inaugural sustainable finance product governed by the framework. On April 8, Scotiabank launched its first Sustainability GIC for retail and small business clients. The use-of-proceeds deposit product is a 30-month non-redeemable GIC that will be allocated, in accordance with the framework, to finance the financing or refinancing, in whole or in part, of new or existing eligible green and social assets (as defined in the framework).

"Scotiabank is delighted to achieve these milestones from a funding program and diversification perspective," said Martin Weeks, executive vice-president and group treasurer, Scotiabank. "This new framework enables the bank to use the proceeds from eligible products to support a broader range of green and social assets and support the bank in its sustainability initiatives."

"At Scotiabank, we are engaging collaboratively with our stakeholders to develop and invest in initiatives that aim to contribute to important sustainability outcomes. By continuing to evolve our own framework as we deliver innovative financing products, we are working towards the goal of a more sustainable future," said Meigan Terry, senior vice-president and chief sustainability, social impact and communications officer at Scotiabank.

About Bank of Nova Scotia

Scotiabank's vision is to be its clients' most trusted financial partner to deliver sustainable, profitable growth and maximize total shareholder return. Guided by its purpose, "for every future," Scotiabank helps its clients, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With assets of approximately $1.4-trillion (as at Jan. 31, 2024), Scotiabank trades on the Toronto Stock Exchange and the New York Stock Exchange.