TORONTO, Dec. 8, 2023
/CNW/ - Scotiabank (TSX: BNS) (NYSE: BNS) today announced its
intention to redeem (i) all outstanding CDN $1,750 million 3.89% Subordinated Debentures
(Non-Viability Contingent Capital (NVCC)) due January 18, 2029 (the "Debentures") at 100% of
their principal amount plus accrued and unpaid interest to but
excluding the date fixed for redemption, and (ii) all outstanding
Non-cumulative 5-Year Rate Reset Preferred Shares Series 40
(Non-Viability Contingent Capital (NVCC)) ("Series 40 Shares") at a
price equal to $25.00 per share
together with dividends declared and unpaid prior to the
redemption. The redemptions of the Debentures and Series 40 Shares
will occur on January 18, 2024, and
January 29, 2024, respectively.
Formal notice will be delivered to the debenture holders in
accordance with the terms and conditions set forth in the related
trust indenture.
On November 28, 2023, the Board of
Directors of Scotiabank declared a quarterly dividend of
$0.303125 per Series 40 Share. This
will be the final dividend of the Series 40 Shares and will be paid
on January 29, 2024, to shareholders
of record at the close of business on January 3, 2024, as previously announced.
Subsequent to this final dividend payment, the Series 40 Shares
will cease to be entitled to dividends.
The redemptions of the Debentures and Series 40 Shares have been
approved by the Office of the Superintendent of Financial
Institutions and will be financed out of the general funds of
Scotiabank. These redemptions are part of the Bank's ongoing
management of its Tier 1 and Tier 2 capital.
About Scotiabank
Scotiabank is a leading bank in the Americas. Guided by our
purpose: "for every future", we help our customers, 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 a team of almost
90,000 employees and assets of approximately $1.4 trillion (as at October 31, 2023), Scotiabank trades on the
Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange
(NYSE: BNS). For more information, please visit
http://www.scotiabank.com and follow us on X @Scotiabank.
Forward-looking
Statements
From time to time, our public communications include oral or
written forward-looking statements. Statements of this type are
included in this document and may be included in other filings with
Canadian securities regulators or the U.S. Securities and Exchange
Commission (SEC), or in other communications. In addition,
representatives of the Bank may include forward-looking statements
orally to analysts, investors, the media and others. All such
statements are made pursuant to the "safe harbor" provisions of the
U.S. Private Securities Litigation Reform Act of 1995 and any
applicable Canadian securities legislation. Forward-looking
statements may include, but are not limited to, statements made in
this document, the Management's Discussion and Analysis in the
Bank's 2023 Annual Report under the headings "Outlook" and in other
statements regarding the Bank's objectives, strategies to achieve
those objectives, the regulatory environment in which the Bank
operates, anticipated financial results, and the outlook for the
Bank's businesses and for the Canadian, U.S. and global economies.
Such statements are typically identified by words or phrases such
as "believe," "expect," "aim," "achieve," "foresee," "forecast,"
"anticipate," "intend," "estimate," "plan," "goal," "strive,"
"target," "project," "commit," "objective," and similar expressions
of future or conditional verbs, such as "will," "may," "should,"
"would," "might," "can" and "could" and positive and negative
variations thereof.
By their very nature, forward-looking statements require us to
make assumptions and are subject to inherent risks and
uncertainties, which give rise to the possibility that our
predictions, forecasts, projections, expectations or conclusions
will not prove to be accurate, that our assumptions may not be
correct and that our financial performance objectives, vision and
strategic goals will not be achieved.
We caution readers not to place undue reliance on these
statements as a number of risk factors, many of which are beyond
our control and effects of which can be difficult to predict, could
cause our actual results to differ materially from the
expectations, targets, estimates or intentions expressed in such
forward-looking statements.
The future outcomes that relate to forward-looking statements
may be influenced by many factors, including but not limited to:
general economic and market conditions in the countries in which we
operate and globally; changes in currency and interest rates;
increased funding costs and market volatility due to market
illiquidity and competition for funding; the failure of third
parties to comply with their obligations to the Bank and its
affiliates; changes in monetary, fiscal, or economic policy and tax
legislation and interpretation; changes in laws and regulations or
in supervisory expectations or requirements, including capital,
interest rate and liquidity requirements and guidance, and the
effect of such changes on funding costs; geopolitical risk; changes
to our credit ratings; the possible effects on our business of war
or terrorist actions and unforeseen consequences arising from such
actions; technological changes and technology resiliency;
operational and infrastructure risks; reputational risks; the
accuracy and completeness of information the Bank receives on
customers and counterparties; the timely development and
introduction of new products and services, and the extent to which
products or services previously sold by the Bank require the Bank
to incur liabilities or absorb losses not contemplated at their
origination; our ability to execute our strategic plans, including
the successful completion of acquisitions and dispositions,
including obtaining regulatory approvals; critical accounting
estimates and the effect of changes to accounting standards, rules
and interpretations on these estimates; global capital markets
activity; the Bank's ability to attract, develop and retain key
executives; the evolution of various types of fraud or
other criminal behaviour to which the Bank is exposed; anti-money
laundering; disruptions or attacks (including cyber-attacks) on the
Bank's information technology, internet connectivity, network
accessibility, or other voice or data communications systems or
services; which may result in data breaches, unauthorized access to
sensitive information, and potential incidents of identity theft;
increased competition in the geographic and in business areas in
which we operate, including through internet and mobile banking and
non-traditional competitors; exposure related to significant
litigation and regulatory matters; climate change and other
environmental and social risks, including sustainability that may
arise, including from the Bank's business activities; the
occurrence of natural and unnatural catastrophic events and claims
resulting from such events; inflationary pressures; Canadian
housing and household indebtedness; the emergence or continuation
of widespread health emergencies or pandemics, including their
impact on the global economy, financial market conditions and the
Bank's business, results of operations, financial condition and
prospects; and the Bank's anticipation of and success in managing
the risks implied by the foregoing. A substantial amount of the
Bank's business involves making loans or otherwise committing
resources to specific companies, industries, or countries.
Unforeseen events affecting such borrowers, industries or countries
could have a material adverse effect on the Bank's financial
results, businesses, financial condition, or liquidity. These and
other factors may cause the Bank's actual performance to differ
materially from that contemplated by forward-looking statements.
The Bank cautions that the preceding list is not exhaustive of all
possible risk factors and other factors could also adversely affect
the Bank's results, for more information, please see the "Risk
Management" section of the Bank's 2023 Annual Report, as may be
updated by quarterly reports.
Material economic assumptions underlying the forward-looking
statements contained in this document are set out in the 2023
Annual Report under the headings "Outlook", as updated by quarterly
reports. The "Outlook" and "2024 Priorities" sections are based on
the Bank's views and the actual outcome is uncertain. Readers
should consider the above-noted factors when reviewing these
sections. When relying on forward-looking statements to make
decisions with respect to the Bank and its securities, investors
and others should carefully consider the preceding factors, other
uncertainties, and potential events.
Any forward-looking statements contained in this document
represent the views of management only as of the date hereof and
are presented for the purpose of assisting the Bank's shareholders
and analysts in understanding the Bank's financial position,
objectives, and priorities, and anticipated financial performance
as at and for the periods ended on the dates presented and may not
be appropriate for other purposes. Except as required by law, the
Bank does not undertake to update any forward-looking statements,
whether written or oral, that may be made from time to time by or
on its behalf.
Additional information relating to the Bank, including the
Bank's Annual Information Form, can be located on the SEDAR+
website at www.sedarplus.ca and on the EDGAR section of the SEC's
website at www.sec.gov.
SOURCE Scotiabank