Bank of Nova Scotia raises equity capital

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.

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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.