/NOTE TO EDITORS: NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES/
TORONTO, March 27, 2013 /CNW/ - Scotiabank (BNS: TSX, NYSE) today announced that it does not intend to exercise its right to redeem the currently outstanding Non-cumulative 5-Year Rate Reset Preferred Shares Series 18 of Scotiabank (the "Preferred Shares Series 18') on April 26, 2013 and, as a result, subject to certain conditions, the holders of Preferred Shares Series 18 have the right to convert all or part of their Preferred Shares Series 18 on a one-for-one basis into Non-cumulative Floating Rate Preferred Shares Series 19 of Scotiabank (the "Preferred Shares Series 19") on April 26, 2013. Holders who do not exercise their right to convert their Preferred Shares Series 18 into Preferred Shares Series 19 on such date will retain their Preferred Shares Series 18.
The foregoing conversions are subject to the conditions that: (i) if, after April 15, 2013, Scotiabank determines that there would be less than one million Preferred Shares Series 18 outstanding after April 26, 2013, then all remaining Preferred Shares Series 18 will automatically be converted into Preferred Shares Series 19 on a one-for-one basis on April 26, 2013, and (ii) alternatively, if Scotiabank determines that there would be less than one million Preferred Share Series 19 outstanding after April 26, 2013, no Preferred Shares Series 18 will be converted into Preferred Shares Series 19. In either case, Scotiabank shall give a written notice to that effect to holders of Series 18 Preferred Shares no later than April 19, 2013.
With respect to any Preferred Shares Series 18 that remain outstanding after April 26, 2013, commencing as of such date, holders thereof will be entitled to receive non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of Scotiabank and subject to the Bank Act (Canada). The dividend rate for the five-year period commencing on April 26, 2013 and ending on April 25, 2018 will be 3.350%, being equal to the 5-Year Government of Canada bond yield determined as at March 27, 2013 plus 2.05%, as determined in accordance with the terms of the Preferred Shares Series 18.
With respect to any Preferred Shares Series 19 that may be issued on April 26, 2013, holders thereof will be entitled to receive floating rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of Scotiabank and subject to the Bank Act (Canada), based on a dividend rate equal the 90-day Canadian Treasury Bill plus 2.05%, on an actual/365 day count basis, subject to certain adjustments in accordance with the terms of the Preferred Shares Series 19. The dividend rate for the period commencing on April 26, 2013 and ending on July 25, 2013 will be equal to 3.028%, as determined in accordance with the terms of the Preferred Shares Series 19.
Beneficial owners of Preferred Shares Series 18 who wish to exercise their right of conversion should communicate as soon as possible with their broker or other nominee and ensure that they follow their instructions in order to ensure that they meet the deadline to exercise such right, which is 5:00 p.m. (Toronto time) on April 11, 2013.
Scotiabank is a leading multinational financial services provider and Canada's most international bank. With more than 82,000 employees, Scotiabank and its affiliates serve some 19 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. In December 2012, Scotiabank became the first Canadian bank to be named Global Bank of the Year and Bank of the Year in the Americas by The Banker magazine, a Financial Times publication. With assets of $736 billion (as at January 31, 2013), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.
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