(March 28 – 17:00 ET) – BNS Capital Trust, part of the Scotiabank Group, has filed a final prospectus with securities commissions across Canada for an issue of Scotiabank – Trust Securities totalling $500 million.

Scotia BaTS are being offered through BNS Capital Trust, a closed-end unit trust, which will purchase a co-ownership interest in a pool of CMHC-insured mortgages from Scotiabank. Scotia BaTS have no maturity date, but are redeemable at par at the option of BNS Capital Trust and subject to regulatory approval on or after December 31, 2010. Subject to BNS Capital Trust’s right to redeem or acquire the “Scotia BaTS”, investors have the right to exchange their “Scotia BaTS” for Scotiabank preferred shares, convertible to common shares of the Bank on or after June 30, 2011.

The Scotia BaTS will be priced at $1,000 each to yield 7.31%, which will be paid semi-annually in an amount of $36.55 per Scotia BaTS on the last day of June and December. The initial payment will be on December 31, 2000 in the amount of $54.27.

As a result of the issue, says Scotiabank, the bank’s Tier 1 capital ratio on a pro forma basis as at January 31, 2000 will be 8.3% and its total capital ratio will be 12.0%. These levels are well in excess of regulatory requirements. The underwriters for the transaction are led by Scotia Capital.
-IE Staff