Bank of Nova Scotia completed the domestic public offering of noncumulative 5-year rate reset preferred shares, series 40.

The bank sold 12 million preferred shares, series 40, at a price of C$25.00 per share or for aggregate gross proceeds of C$300 million.

When the bank's board declares a dividend, shareholders will be entitled to receive a noncumulative quarterly fixed dividend for the initial period ending Jan. 26, 2024, at a rate of 4.85% per annum.

On Jan. 27, 2024, and on Jan. 27 every five years thereafter, the bank may redeem all or a portion of the then outstanding preferred shares, series 40, at a redemption price of C$25 per share. The dividend rate will reset every five years at a rate equal to 2.43% over the 5-year Government of Canada bond yield.

Holders of preferred shares, series 40, will have the right to convert all or a part of their Scotiabank shares to noncumulative floating rate preferred Scotiabank shares, series 41, on Jan. 27, 2024, and on Jan. 27 every five years thereafter.

Holders of the preferred shares, series 41, will be entitled to receive a noncumulative quarterly floating dividend at a rate equal to the 3-month Government of Canada Treasury Bill yield plus 2.43%, when declared by Scotiabank's board. Holders of preferred shares, series 41, will have the right to convert all or a portion of their shares to preferred shares, series 40, on Jan. 27, 2029, and on Jan. 27 every five years thereafter.