Could Scotiabank’s New Eurobond Offering Reveal a Shift in Funding Strategy for TSX:BNS?

• On August 15, 2025, Bank of Nova Scotia announced a fixed-income offering for 5.00% senior unsubordinated unsecured notes due August 29, 2035, issued at par with a 2.25% discount and callable features as EuroBonds and Eurodollar bonds.
• This latest bond issuance highlights the bank’s ongoing focus on proactive risk management and funding flexibility in a changing macroeconomic landscape.
• We’ll explore how this fixed-income offering may influence Bank of Nova Scotia’s long-term earnings outlook and capital allocation plans.

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Bank of Nova Scotia Investment Narrative Recap

Owning shares of Bank of Nova Scotia often comes down to confidence in the bank’s capital redeployment into higher-growth markets and its ability to manage risks amid shifting macroeconomic conditions. The recent fixed-income offering, with its callable features and competitive coupon, does not appear to materially affect the short-term catalyst of earnings growth from its international and wealth management operations, nor does it increase the primary risk of heightened provisions for credit losses amid economic uncertainty. One recent announcement that stands out is the share repurchase program for up to 20 million shares, which marked a meaningful capital allocation move just prior to this new bond issuance. While the repurchase plan seeks to reward shareholders, it is important to consider how the combination of equity and debt activities ties back to overall capital strength as the broader credit environment continues to evolve. But on the flip side, investors should know about higher non-retail credit migration and how it could...

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

Bank of Nova Scotia's narrative projects CA$39.5 billion revenue and CA$9.8 billion earnings by 2028. This requires 10.6% yearly revenue growth and a CA$3.7 billion earnings increase from CA$6.1 billion.

Uncover how Bank of Nova Scotia's forecasts yield a CA$80.87 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community members shared 11 fair value estimates for Bank of Nova Scotia, ranging from CA$69.51 to CA$131.32 per share. With revenue growth forecast above the broader market, these diverse opinions reflect how widely views can differ, especially as changing credit quality remains on participants’ radars.

Explore 11 other fair value estimates on Bank of Nova Scotia - why the stock might be worth 13% 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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