Scotiabank closes first part of KeyCorp funding

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TORONTO — Scotiabank says it has accomplished step one in its funding in KeyCorp with the acquisition of a 4.9 per cent stake within the U.S. financial institution.

The Canadian financial institution says it paid US$17.17 per share or about US$800 million for the stake.

Scotiabank introduced earlier this month a deal to accumulate a 14.9 per cent stake in KeyCorp in two tranches.

The second part of the funding contains the acquisition of the remaining 10 per cent stake and is predicted to shut in fiscal 2025, topic to regulatory approval.

KeyCorp operates in 15 states, with about 1,000 branches providing business and retail banking and funding recommendation and providers.

Scotiabank chief govt Scott Thomson has stated the funding in KeyCorp represents a low-cost, low-risk method to deploying capital within the U.S. market.

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