The Bank of Nova Scotia admitted two series of covered bonds totaling £2 billion to the London Stock Exchange main market. The issuance includes £1.25 billion in floating-rate bonds maturing in March 2030. A second series consists of £750 million in 5.125% fixed-rate bonds due in December 2032.
This action is part of the bank's CAD 100 billion Global Registered Covered Bond Program to diversify funding sources. Scotiabank shares faced downward pressure as investors weighed the increased debt load and future interest costs. While the move improves international funding access, it raises questions regarding leverage and balance-sheet flexibility. The bank offered the bonds exclusively to non-U.S. persons in offshore transactions under Regulation S.