BNS.PR.T & BNS.PR.X Called For Redemption

The Bank of Nova Scotia has announced:

that it intends to exercise its right to redeem all outstanding Non-cumulative Preferred Shares Series 26 (“Series 26 Shares”) and Non-cumulative Preferred Shares Series 28 (“Series 28 Shares”) of Scotiabank on April 26, 2014 at a price equal to $25.00 per share (the “Redemption Price”). As April 26, 2014 is a Saturday, the Redemption Price will be paid on Monday, April 28, 2014. Formal notice will be issued to shareholders in accordance with the share conditions.

The redemptions have been approved by the Office of the Superintendent of Financial Institutions and will be financed out of the general funds of Scotiabank.

On March 4, 2014, the Board of Directors of Scotiabank declared quarterly dividends of $0.390625 per Series 26 Share and $0.390625 per Series 28 Share. These will be the final dividends on the Series 26 Shares and Series 28 Shares, respectively, and will be paid in the usual manner on April 28, 2014 to shareholders of record at the close of business on April 1, 2014, as previously announced. After April 28, 2014, the Series 26 Shares and the Series 28 Shares will cease to be entitled to dividends.

Neither of these redemption calls should come as a surprise. Series 26 (BNS.PR.T) has an Issue Reset Spread of 414bp; Series 28 (BNS.PR.X) resets at 446bp.

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