Bank of Nova Scotia issued $250 million in subordinated debt in both the U.S. and Canadia markets on Tuesday.
The 15-year U.S. issue was priced to yield 6.31%, 83 basis U.S. Treasury note.
The 20-year Canadian-dollar-denominated issue was priced to yield 8.34%.
Proceeds will refinance outstanding debt and add to capital, a bank official said.
Debt to Be Retired
The bank on Sept. 15 will retire $200 million of 10.25% subordinated debt. The bank also has $200 million 10.15% debt that is callable later this year.
Bank of Nova Scotia chose a 15-year maturity over the more conventional 10-year one because it has a large amount of debt maturing in 10 years, the official said.
The issues will raise the bank's total capital ratio to 10.50% under Canadian guidelines.
Salomon Brothers Inc. and Scotia McLeod (USA) Inc. were co-lead managers on the U.S. issue; Scotia McLeod led the Canadian.
