KEYCORP AND SCOTIABANK COMPLETE STRATEGIC MINORITY INVESTMENT

Rhea-AI Summary

KeyCorp (NYSE: KEY) has announced the completion of Scotiabank's strategic minority investment, with Scotiabank purchasing approximately $2.0 billion worth of KeyCorp's common stock. Following this transaction, which received Federal Reserve approval on December 12, 2024, Scotiabank now owns approximately 14.9% of KeyCorp's common stock. This investment fulfills the agreement previously announced on August 12, 2024.

Positive

• Secured $2.0 billion capital injection through strategic investment
• Successful completion of previously announced strategic partnership with major financial institution

Negative

• Dilution of existing shareholders' ownership with 14.9% stake sale

CLEVELAND, Dec. 27, 2024 /PRNewswire/ -- KeyCorp (NYSE: KEY) today announced that The Bank of Nova Scotia ("Scotiabank") has completed its purchase of KeyCorp's common stock with an investment of approximately $2.0 billion, as expected.  With this investment, Scotiabank (TSX: BNS) (NYSE: BNS) now owns approximately 14.9% of KeyCorp's common stock. The parties received Federal Reserve approval for the transaction on December 12, 2024.

This purchase completes Scotiabank's strategic minority investment in KeyCorp pursuant to the agreement announced on August 12, 2024.

About KeyCorp
KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $190 billion at September 30, 2024.

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.

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 $1.4 trillion (at October 31, 2024), 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 www.scotiabank.com and follow us on X @Scotiabank.

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SOURCE KeyCorp

FAQ

How much did Scotiabank invest in KeyCorp (KEY) in December 2024?

Scotiabank invested approximately $2.0 billion in KeyCorp through a purchase of common stock in December 2024.

What percentage of KeyCorp (KEY) does Scotiabank now own?

Following the December 2024 investment, Scotiabank owns approximately 14.9% of KeyCorp's common stock.

When did KeyCorp (KEY) receive Federal Reserve approval for the Scotiabank investment?

KeyCorp received Federal Reserve approval for the Scotiabank investment on December 12, 2024.

When was the strategic investment agreement between KeyCorp (KEY) and Scotiabank initially announced?

The strategic investment agreement between KeyCorp and Scotiabank was initially announced on August 12, 2024.