Scotiabank to issue $650 million of Scotiabank Tier 1 Trust Securities Through Scotiabank Tier 1 Trust



    /NOT FOR RELEASE OR DISSEMINATION IN THE UNITED STATES/

    TORONTO, May 7 /CNW/ - Scotiabank today announced that Scotiabank Tier 1
Trust (the "Trust"), part of the Scotiabank Group, has issued $650 million of
Scotiabank Tier 1 Trust Securities - Series 2009-1 due June 30, 2108 ("Scotia
BaTS III Series 2009-1"). The Scotia BaTS III Series 2009-1 are subordinated,
unsecured debt obligations of the Trust and will qualify as Tier 1 capital of
Scotiabank for regulatory purposes.
    The price of each Scotia BaTS III Series 2009-1 will be $1,000 and
interest will be paid semi-annually in the amount of $39.01 per Scotia BaTS
III Series 2009-1 on the last day of June and December until June 30, 2019.
After June 30, 2019 and on every fifth anniversary thereafter until 2104, the
interest rate on the Scotia BaTS III Series 2009-1 will be reset at an
interest rate per annum equal to the then prevailing Government of Canada
Yield plus 7.05%. The first interest payment will be made on June 30, 2009 in
the amount of $11.54 per Scotia BaTS III Series 2009-1.
    On or after June 30, 2014, the Trust may, at its option redeem the Scotia
BaTS III Series 2009-1, in whole or in part, subject to the approval of the
Superintendent of Financial Institutions of Canada.
    In certain circumstances the Scotia BaTS III Series 2009-1 will be
automatically exchanged for non-cumulative preferred shares of the Bank. In
addition, in certain circumstances, holders of Scotia BaTS III Series 2009-1
will be required to invest cash interest paid thereon in non-cumulative
preferred shares of the Bank.
    This domestic public offering is part of Scotiabank's ongoing and
proactive management of its Tier 1 capital structure.
    The Scotia BaTS III Series 2009-1 will not be listed on any stock
exchange.
    Neither the Scotia BaTS III Series 2009-1 nor the non-cumulative
preferred shares of the Bank have been or will be registered under the United
States Securities Act of 1933, as amended, or under any state securities laws,
and may not be offered, sold, directly or indirectly, or delivered within the
United States of America or its territories and possessions or to, or for the
account or benefit of, United States persons except in certain transactions
exempt from the registration requirements of such Act. This release does not
constitute an offer to sell or a solicitation to buy such securities in the
United States.

    Scotiabank is one of North America's premier financial institutions and
Canada's most international bank. With more than 69,000 employees, Scotiabank
Group and its affiliates serve approximately 12.8 million customers in some 50
countries around the world. Scotiabank offers a diverse range of products and
services including personal, commercial, corporate and investment banking.
With more than $509 billion in assets (as at January 31, 2009), Scotiabank
trades on the Toronto (BNS) and New York Exchanges (BNS). For more information
please visit www.scotiabank.com.

    %SEDAR: 00001289EF




For further information:

For further information: Michael Lomas, Managing Director, Capital and
Mid-Term Funding, Scotiabank, (416) 866-5734, or
michael_lomas@scotiacapital.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890