TORONTO, Sept. 22, 2026 /CNW/ - Scotiabank announced that the Bank priced CAD $750 million aggregate principal amount of 5NC4 Canadian Defence Notes (the “Bonds”) on September 21, 2026, its first offering under Scotiabank’s Canadian Defence Issuance Framework (the “Framework”).
Scotiabank intends to allocate an amount equal to the net proceeds of the Bonds to finance and/or refinance eligible assets in accordance with the Framework, supporting Canada’s defence, security and resilience priorities.
The Bonds represent the first defence-labelled issuance by any entity in the Canadian market.
“We are proud to launch the first transaction under Scotiabank’s Defence Issuance Framework, providing investors with an opportunity to participate in a labelled bond supporting Canada’s defence capabilities, industrial base and long-term economic resilience,” said Paul Scurfield, Executive Vice President and Global Head, Capital Markets, Scotiabank.
The Framework is informed by Canadian and allied defence priorities, including Canada’s Defence Industrial Strategy and its defence vision, Our North, Strong and Free, and sets out the eligible activities and reporting commitments applicable to Defence Instruments issued under the Framework.
Scotiabank’s Canadian Defence Issuance Framework received an independent assessment from Sustainable Fitch, which found that the Framework is aligned with emerging defence financing market practices.
“This transaction represents an important milestone in the development of Scotiabank’s funding programs and demonstrates the role capital markets can play in supporting Canada’s evolving defence and security priorities,” said Brandon Konigsberg, Executive Vice President and Group Treasurer, Scotiabank.
The Canadian Defence Issuance Framework and Sustainable Fitch’s Defence Issuance Framework Assessment are available on Scotiabank’s website at: https://www.scotiabank.com/ca/en/about/investors-shareholders/funding-programs/defence-issuances.html.
ABOUT SCOTIABANK
Scotiabank’s vision is to be our clients’ most trusted financial partner and deliver sustainable, profitable growth. Guided by our purpose: “for every future,” we help our clients, their families and their communities achieve success through a broad range of advice, products, and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With assets of approximately $1.5 trillion (as at July 31, 2026), Scotiabank is one of the largest banks in North America by assets, and trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS).
For more information, please visit http://www.scotiabank.com and follow us on X @Scotiabank.
Noah Note: Scotiabank moves again ahead of the DSRB and post-Investment summit, putting out the first defence-labelled bond issued in Canada just two weeks after releasing their Defence Issuance Framework. Of course, once the framework was out there this was gonna happen soon after, so not a huge surprise save Scotiabank being quick to really get out there out the gate.
As per the usual disclosure with this kind of stuff, and I am not a finance guy so pardon me. That is Matt at Icebreakers field, but some of you naturally have some questions on this stuff that I wanna try and answer. This is not $750 million invested in defence. Scotiabank has borrowed the money and committed to holding at least that much in qualifying defence loans.
To be eligable, comoanies need to be Canadian headquartered or listed on a Canadian exchange. They must also show sector involvement through either membership in a Canadian Defence and Security association (such as CADSI or AIAC), a government supplier list, or work in one of ten eligible categories.
Those categories are split into Core Defence activities and Defence-related activities. I have included the losts as Scotiabank has provided so you can get a proper, clear look at it yourselves.
Where defence makes up at least half of a company's revenue, capex or cash flow, the whole loan counts toward the portfolio. Below that, only a proportional share does. Scotiabank will report allocations annually, at the portfolio level, with an outside review, and has 24 months to fully allocate the proceeds.
This setup aligns fairly well to what Groupe BPCE put out last year, €750 million over five years. That example faced notably high demand. We don't fully know what the order book is looking like for Scotia, but I expect demand was also very high here, especially with the inclusion of Defence-related sectors like AI, Critical Minerals, and Semiconductors. All of which, mind you, really need little to tie them into the Defence Industrial Base as a whole. It's more justification than strictness for many.
Some word still left on how subsidiary are treated here, but so far it's looking fairly ooen so long as they're headquartered here. We now get to await the other big five to move themselves, which I suspect will slowly roll through over the fall and winter.