Scotiabank Announces Preferred Share Offering


    TORONTO, March 6 /CNW/ - Scotiabank today announced a domestic public
offering of 12 million, non-cumulative 5-year rate reset preferred shares
Series 18 (the "Preferred Shares Series 18") at a price of $25.00 per share,
for an aggregate amount of $300 million.
    Holders of Preferred Shares Series 18 will be entitled to receive a
non-cumulative quarterly fixed dividend for the initial five-year period
ending April 25, 2013 of 5.00% per annum, as and when declared by the Board of
Directors of Scotiabank. Thereafter, the dividend rate will reset every five
years at a level of 205 basis points over the 5-year Canada bond yield.
Shareholders will, subject to certain conditions, have the option to convert
all or any part of their shares to non-cumulative floating rate preferred
shares Series 19 (the "Preferred Shares Series 19") of Scotiabank. Holders of
the Preferred Shares Series 19 will be entitled to receive a non-cumulative
quarterly floating dividend equal to the 3-month Government of Canada Treasury
Bill yield plus 205 basis points, as and when declared by the Board of
Directors of Scotiabank.
    The Bank has agreed to sell the Preferred Shares Series 18 to a syndicate
of underwriters led by Scotia Capital Inc. on a bought deal basis. The Bank
has granted to the underwriters an over allotment option to purchase up to an
additional $45 million of the Preferred Shares Series 18 at any time up to 30
days after closing.
    Closing is expected to occur on or after March 25, 2008. This domestic
public offering is part of Scotiabank's ongoing and proactive management of
its Tier 1 capital structure.
    The Preferred Shares Series 18 and Preferred Shares Series 19 have not
been and will not 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
and 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 60,000 employees, Scotiabank
Group and its affiliates serve approximately 12.5 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 $449 billion in assets (as at January 31, 2008), Scotiabank trades on the
Toronto (BNS) and New York Exchanges (BNS). For more information please visit

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For further information:

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

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