Bank of Nova Scotia (TSX: BNS) raised a cool $1.5 billion in equity financing today, citing the need to pay for acquisitions and shoring up their Tier I capital requirements.
This represents roughly a 3% dilution of shareholders.
I wonder why they raised equity capital instead of relatively cheaper preferred share capital.
It’s all about the Tier 1 common ratio (think Basel III). Prefs just won’t do.
Thanks. I had Tier 1 common vs. Tier 1 capital ratios intermixed.