Scotiabank sells first Canadian defence bond as spending rises

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeFinanceBankingScotiabank sells first Canadian defence bond as spending risesThe bank raised $750 million in a bond sale this weekAuthor of the article:A soldier stands beside a Canadian flag as members of the military display vehicles and machinery at the 2026 Provincial Skills Canada Competition at the Edmonton Expo Centre on May 6, 2026. Photo by David BloomBank of Nova Scotia sold Canada’s first defence bond as the country prepares for a rapid buildup in military spending.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountScotiabank raised $750 million in a bond sale this week, and plans to use the proceeds to finance eligible assets, which can include general purpose loans to public or private entities in the defence and security sectors.The money can go toward a variety of sectors such as energy infrastructure, critical minerals, artificial intelligence and advanced semiconductors, according to a framework published by the bank. But “activities are eligible only if they support defence, security and resilience objectives.”It’s the first defence-labelled bond in the Canadian market, Scotiabank said.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againFuture issuance of similar bonds will depend on Scotiabank’s funding needs and Canada’s evolving security priorities, Fanny Doucet, the bank’s head of sustainable finance, said in a statement.The bond sale drew 51 investors who put in orders more than twice the size of the bond, according to people familiar with the matter, who asked not to be identified as they aren’t authorized to speak publicly.Scotia targeted the same investor base for the defense bond as it did for its regular senior bail-in bonds, Doucet said.A French bank sold Europe’s first defense bond last August.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.