Scotia has announced:
that it has completed the domestic offering of $1 billion of 6.65% Subordinated Debentures due 2021 (the “Debentures”). The Debentures will qualify as Tier 2B capital of the Bank for regulatory purposes and are part of Scotiabank’s ongoing and proactive management of its capital structure.
The prospectus supplement is available on SEDAR, dated January 19:
The Debentures offered by this prospectus supplement will be dated January 22, 2009 and will mature on January 22, 2021. Interest on such Debentures at the rate of 6.65% per annum will be payable in equal semi-annual payments in arrears on January 22 and July 22 in each year, commencing July 22, 2009 and continuing until January 22, 2016.
The initial interest payment, payable on July 22, 2009, will be $33.25 per $1,000 principal amount of Debentures, based on an anticipated closing date of January 22, 2009. From January 22, 2016 until maturity on January 22, 2021, interest on such Debentures will be payable at an annual rate equal to the 90-day Bankers’ Acceptance Rate (as defined herein) plus 5.85% payable quarterly in arrears on the 22nd day of each of April, July, October and January in each year, commencing April 22, 2016.
A penalty rate of BAs+585! Note 12 of the Scotia 2008 Annual Report lists an issue with a pretend-maturity of 2009-5-12, real maturity in 2014, penalty rate of BAs+100bp.
Three month BAs are recorded by the Bank of Canada at 0.96% as of 1/21.