TORONTO, Aug. 3, 2021 /CNW/ - Scotiabank today announced
the closing of its inaugural USD 1 billion 3-year
Sustainability Bond offering, in support of the Bank's commitment
to making a positive impact and creating better communities for
every future. Net proceeds from the Sustainability Bond offering
will be used to fund the financing or refinancing, in whole or in
part, eligible green and/or social assets, which refer to new or
existing assets, businesses or projects that meet the Scotiabank
Sustainable Bond Framework Eligibility Criteria.
This is the largest Sustainability Bond issued by a Canadian
Financial or Corporate to date. A portion of the proceeds of
this bond will help advance women-led businesses through The
Scotiabank Women Initiative™ - a comprehensive program that
supports women clients across all four business lines at Scotiabank
and is dedicated to helping women take their businesses to the next
level through Access to Capital, Mentorship, and Education.
"Our clients look to Scotiabank for
leadership in financing sustainable business
growth," said Jake Lawrence, Group
Head and CEO, Global Banking and Markets at Scotiabank. "We are
proud to have launched this USD 1
billion Sustainability Bond with three Diversity &
Inclusion firms as active co-managers and to build on Scotiabank's
commitment to drive the evolution and enhancement of social
responsibility initiatives."
Scotiabank's approach to sustainability is intended to deliver
economic, social and environmental value to our customers, our
operations and the world around us. Following the Green Bond
issuance in 2019, Scotiabank updated its framework to the
Sustainable Bond Framework in order to help investors align
themselves better to various environmental and climate-related
issues via participation in a Sustainability Bond
offering.
The Sustainable Bond Framework categories include all of those
listed in the Green Bond Framework as well as the following
additional social categories:
- Affordable Basic Infrastructure
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- Affordable/Community Housing
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- Access to Essential Services
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- Creating Economic Resilience
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- Leadership in Diversity & Inclusion
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Scotiabank launched its Sustainable Bond
Framework in July 2021. The framework has received
a Second-Party Opinion from Sustainalytics, a global
leader in ESG and Corporate Governance research and ratings, and is
in line with the Green Bond Principles 2021, Social Bond Principles
2021, and the Sustainability Bond Guidelines 2021, as administered
by the International Capital Market Association.
"This is a significant milestone from a funding program and
diversification perspective," said Christy
Bunker, SVP, Canadian Banking and Global Wealth Management
Treasurer, Term Funding & Capital Management,
Scotiabank. "This new Bond enables the Bank to expand our use
of proceeds to include assets such as those originated through The
Scotiabank Women Initiative among other social
categories."
"We all have an important role to play in driving a positive
impact on society while enabling sustainable development and the
transition to a low-carbon economy for current and future
generations," said Meigan Terry, SVP, Chief Communications and
Social Impact Officer at Scotiabank. "This inaugural Sustainability
Bond offering helps Scotiabank put into practice the commitment we
have made to improve society and drive meaningful change for every
future."
Earlier this year, the Bank launched its inaugural Net Zero
Research Fund as part of its commitment to pursuing Net Zero
targets and Pathways. Scotiabank has committed to
establishing bank-wide, quantitative, time-bound targets for
reducing greenhouse gas emissions associated with our underwriting
and lending activities. To get there, Scotiabank is undertaking a
quantitative analysis of the greenhouse gas intensity of the Bank's
loan book and underwriting activities, research on pathways to net
zero, development of plans and targets for reducing emissions, and
creation of a reporting framework to ensure
transparency.
In addition to today's announcement, Scotiabank continues to
build on the following sustainability initiatives:
- Served as bookrunner on more than $10
billion of green, social, sustainability and
sustainability-linked bonds since 2014
- Achieved a 20% reduction in operational greenhouse gas
emissions from 2016 levels
- Contributed nearly $85 million to
communities through donations, community sponsorships, employee
volunteering and other types of community investment
- Launched ScotiaRISE – a 10-year, $500
million initiative to promote economic resilience among
disadvantaged groups
- To date we have committed $3
billion to support women-owned and women-led businesses
- Renewed our five-year Diversity and Inclusion Goals, with a
focus on people who identify as Black, Indigenous peoples, visible
minorities, People with Disabilities and Women
- For the third consecutive year, achieved top 1% in Corporate
Governance among financial institutions globally according to the
Dow Jones Sustainability Index, and awarded a perfect score on
Anti-Crime Policies
- Strengthened our commitment to responsible procurement and
supplier diversity by joining the Canadian Aboriginal and
Minority Supplier Council, and became an Aboriginal
Procurement Champion for the Canadian Council for Aboriginal
Business
- Published our second Green Bond Report to provide investors
with an overview of the estimated impact of the use of proceeds in
July 2021.
- Received a "AAA" rating from MSCI, a leading provider of
critical decision support tools and services for the global
investment community - held by only 2% of banks globally.
- About Scotiabank
Scotiabank is a leading bank in the Americas. Guided by our
purpose: "for every future", we help our customers, 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 a team of
approximately 90,000 employees and assets of approximately
$1.1 trillion (as at April 30, 2021), Scotiabank trades on the Toronto
Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS).
For more information, please visit www.scotiabank.com and
follow us on Twitter @ScotiabankViews.
About The Scotiabank Women Initiative
The Scotiabank Women Initiative is a comprehensive program
designed to break down barriers and increase economic opportunity
for women to be successful, now and in the future, by providing
unbiased access to Capital & Tailored Solutions; Bespoke
Specialized Education; and Holistic Advisory Services &
Mentorship. A unique offering soon to be embedded across
Scotiabank's footprint (International Banking to be launched later
this year), The Scotiabank Women Initiative provides equal access
to financing for women-owned and led-businesses within Canadian
Business Banking; helps women clients pursue their best
professional futures within Global Banking and
Markets, and helps women take charge of their financial
futures through Education, Advice, and Access to Wealth Management
Services within Global Wealth Management,. For more
information on The Scotiabank Women Initiative,
visit scotiabankwomeninitiative.com.
SOURCE Scotiabank