Bank of Nova Scotia's €500 Million Eurobond Could Be a Game Changer for (TSX:BNS)

• On November 4, 2025, Bank of Nova Scotia completed a €500 million offering of floating rate junior senior unsecured notes due November 2029, with the notes characterized as callable Euro MTN securities issued under Regulation S.
• This transaction stands out for its potential influence on the bank’s capital structure and access to euro-denominated funding at a time of heightened interest in fixed-income markets.
• We’ll look at how Bank of Nova Scotia’s successful €500 million bond issue could impact its forward-looking investment narrative and funding flexibility.

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Bank of Nova Scotia Investment Narrative Recap

To be a shareholder of Bank of Nova Scotia, you need to believe in its long-term growth prospects from expanding banking and wealth services, especially in the Pacific Alliance markets, while seeing potential in its focus on digital transformation. The recent €500 million eurobond issue strengthens BNS’s funding options and flexibility, though it does not materially change the key short-term catalyst, growth in international banking, and the biggest risk remains credit quality exposure in Latin America.

One recent development particularly relevant to this bond issuance is the October 2025 debt financing, in which BNS issued US$1,000 million in Fixed Rate Resetting Capital Notes and US$1,000 million in Additional Tier 1 Capital Notes. These back-to-back capital market activities highlight continued efforts to diversify the bank’s funding sources and optimize its capital structure, a crucial consideration as BNS seeks to support loan growth while managing its risk profile.

In contrast, investors should be aware that concentrated exposure in Latin America could quickly magnify credit risks if economic conditions shift…

Read the full narrative on Bank of Nova Scotia (it's free!)

Bank of Nova Scotia's outlook projects CA$39.8 billion in revenue and CA$10.0 billion in earnings by 2028. This is based on an anticipated 7.9% annual revenue growth rate and an increase in earnings of CA$3.3 billion from the current level of CA$6.7 billion.

Uncover how Bank of Nova Scotia's forecasts yield a CA$88.29 fair value, a 7% downside to its current price.

Exploring Other Perspectives

Community fair value estimates for Bank of Nova Scotia range from CA$75.13 to CA$121.39 across 11 different opinions from the Simply Wall St Community. Credit quality risks, especially in Latin America, remain central to how performance may diverge from consensus over time, so take time to compare these perspectives.

Explore 11 other fair value estimates on Bank of Nova Scotia - why the stock might be worth 21% less than the current price!

Build Your Own Bank of Nova Scotia Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Bank of Nova Scotia research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Bank of Nova Scotia research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bank of Nova Scotia's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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