Scotiabank to raise C$1.5 billion in share offering
* Plans to sell 30 mln shares at C$50.25 each
* Proceeds to pay for acquisitions, boost capital levels
TORONTO, Feb 1 (Reuters) - Bank of Nova Scotia (BNS.TO), Canada's third-largest bank, announced plans on Wednesday to raise C$1.5 billion ($1.5 billion) in a public share offering to boost its capital level and pay for previously announced acquisitions.
The bank, which has been adding to holdings in Latin America and Asia, said it would sell 30 million common shares at C$50.25 each on a bought deal basis.
Scotiabank shares closed trading at C$51.84 on the Toronto Stock Exchange on Wednesday.
The cash, in addition to C$1 billion that Scotiabank is expected to raise from the sale of its Toronto headquarters building, will help bring the bank's capital levels up to par with its Canadian rivals and meet regulatory expectations.
The bank said proceeds of these and other actions would significantly increase its Tier 1 capital.
"As a result, the bank is confident that its Basel III common equity Tier 1 capital ratio will exceed 7.0 percent in the first quarter of 2013," it said.
Under new Basel III regulatory requirements, banks must raise their Tier 1 common equity ratios to 7 percent by 2019. Canada's financial services regulator, however, wants the country's banks to be at that level by early 2013.
As well as other recent acquisitions, Scotiabank paid C$2.3 billion last year for the 82 percent of DundeeWealth that it did not already own, making the bank Canada's No. 5 wealth manager.
(Reporting By Pav Jordan; Editing by Peter Galloway)
((firstname.lastname@example.org)(416 941 8163)(Reuters Messaging: email@example.com)) Keywords: SCOTIABANK/SHARES
(C) Reuters 2011 All rights reserved. Republication or redistribution of Reuters content, including by caching, framing, or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
- Tweet this
- Share this
- Digg this
- Barclays profits fall as investment bank income sags
- Libyan militants overrun Benghazi special forces base as chaos deepens
- African girls to sue British Airways over alleged abuse by pilot
- Carnage at U.N. school as Israel pounds Gaza refugee camp |
- EU and U.S. announce new sanctions on Russia over Ukraine |