Osler represents The Bank of Nova Scotia on IFR Award-winning debt offering

Timothy Hughes

Dec 15, 2017

Osler is proud to have represented The Bank of Nova Scotia (BNS) on its offering of 4.650% fixed to floating rate non-cumulative subordinated Additional Tier 1 Capital Notes for US$1.25 billion, which won the International Financing Review (IFR) Award in the North American Financial Bond (2017) category.

Osler partners Timothy Hughes and Kashif Zaman worked on the matter, which was unique as it represents the first issuance of this new form of Additional Tier 1 Capital, which expands the scope of available investor markets to Canadian banks.

According to IFR, “(the) bond stood out for its unique structure, which opened up a path towards offshore U.S. dollar-dominated AT1s for Canadian financial institutions.” The IFR also noted that “the structure broke through what had been a barrier for entry for Canadian banks into U.S. dollar markets – withholding tax requirements.”

The BNS Notes build on the technology pioneered by Osler in the Emera Hybrid Notes offering, which provided 50% equity credit for rating agency purposes, and had a deductible coupon that does not attract Canadian withholding tax.

The IFR Awards honour excellence and achievement in capital markets and will be presented on January 30, 2018 in London. View the complete list of 2017 winners [PDF].