Transportation Group Overview

Scotia Capital, Scotiabank and its subsidiaries are leading providers of financial services to the transportation industry worldwide. Our client base includes major shipping companies, airlines, rail companies, equipment lessors, manufacturers and suppliers of products and services to these industries. Industry specialists are located in London (Global Co-ordination Centre), Montreal (North American Aerospace), New York and Singapore.

Services include:

• Arranging and providing structured and project based finance for ships, aircraft, engines, containers, railcars, trucking and offshore oil equipment;
• Pre and post-completion acquisition finance;
• Lease financing (finance leases, synthetic operating leases and equity investments in synthetic and leveraged leases);
• High yield debt underwriting;
• Trading and research;
• Cash management;
• Currency, interest rate and credit default risk hedging instruments;
• Defeasance;
• Securitization

We also offer a full range of other ancillary products through our strong global network of branches and subsidiaries.

Global Aerospace

Scotia Capital has had a successful involvement with the aerospace industry for over fifty years. Scotia Capital consistently acts as Arranger, Agent or Underwriter on deals in which it is involved and was ranked fourth as Arrangers/Co-Arrangers of Global Air Industry Related Loans during the period 1 Jan/01 to 25 Sep/01 (Thomson Financial).

Notable recent transactions include:

• Underwriter and agent in a European Export Credit Agency framework facility for 8 wide-body aircraft.
• Co-Arranger in a GBP2 billion Corporate Facility to part finance a company acquisition.
• Arranger, Agent and Swap Provider on a US$200,000,000 ground breaking umbrella financing facility to provide financing for up to ten narrow bodied aircraft.
• Arranger of term loans, Commercial paper Liquidity Facility and Securitised Structure for the lease of 3 CL-415 Canadair Water bombers for a regional government.
• Arranger and Agent in the financing of one B767-300ER aircraft.
• Arranger and Agent of two Japanese Leveraged Lease financings for two B757 aircraft for a leading global airline.
• Agent in the financing of one B777-200IGW aircraft.
• Co-Arranger in the provision of a US$360,000,000 engine sales facility for a leading aero engine manufacturer.
• Co-Arranger on a GBP535,000,000 M.B.O. of a leading engine maintenance, repair and overhaul business and aviation parts manufacturer.

For further information, please contact:

William Swords
Industry Head and Managing Director
(44-20) 7826-5795
william_swords@scotiacapital.com

Paul Bishop
Director
(44-20) 7826-5638
paul_bishop@scotiacapital.com

Global Shipping

Scotia Capital has a long history in the shipping industry and is recognised as a true Shipping Bank. Commitments cover all sectors of the industry including Cruise shipping, Tankers, Dry Bulk, Container shipping, Ferries, LNG/LPG, FPSO's, shipyards and tugs.

Notable recent transactions include:

• Lead Arranger and Agent in a financing for a new 2000 berth cruise ship for a leading cruise operator.
• Joint Arranger and Agent in a large credit facility for a leading shipyard to facilitate the building of cruise ships for leading worldwide cruise operators.
• Agent Arranger and swap provider to finance a shuttle tanker to be chartered to the field partners in the Terra Nova oilfield in eastern Canada for a Norwegian ship owner.
• Defeasance Bank for structured UK tax leases on off-shore equipment.
• Agent and Arranger in a facility for a major shipping company to provide funds for the acquisition of a Car Carrier.
• Arranger in a US$200,000,000 Tanker Financing Facility for large shipping corporation.
• Co-Arranger and Underwriter for a US$130,000,000 tanker financing facility.

For further information please contact: