* Plans to sell 30 mln shares at C$50.25 each
* Proceeds to pay for acquisitions, boost capital levels
TORONTO, Feb 1 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
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)
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