Bank of Nova Scotia sold the first bonds in the Canadian market that will be used to help the country finance spending on defense, security and resilience priorities.

The bank said Tuesday it priced 750 million Canadian dollars (US$534.4 million) of 5NC4 Canadian Defense Notes. Scotiabank plans to allocate an amount equal to the net proceeds from the bonds to finance or refinance eligible assets.

The transaction represents an important milestone in the development of Scotiabank's funding programs and demonstrates the role capital markets can play in supporting Canada's evolving defense and security priorities, said Brandon Konigsberg, executive vice president and group treasurer.

In the past year, Canada has met its North Atlantic Treaty Organization spending target of 2% of gross domestic product ahead of schedule and pledged to meet NATO's new target of 5%. Canadian Armed Forces recruitment has also reached a 30-year high, and the country has begun acquiring billions of dollars in new military hardware.