Scotiabank in $889 Million Municipal Gas Prepay Transaction

Cleary Gottlieb represented The Bank of Nova Scotia (Scotiabank), acting through its Houston branch, as funding recipient in The Public Energy Authority of Kentucky’s (PEAK) issuance of gas supply revenue bonds, 2026 Series B, through a structure that allows PEAK to prefund gas purchases and allows Scotiabank to obtain funding at attractive rates.

In connection with the bond offering, Scotiabank received a cash deposit in the amount of $889 million from GNM Energy Prepay VI LLC (Gas Supplier), an entity wholly owned by Citadel Energy Marketing LLC, and issued a deposit note to Gas Supplier, pursuant to which Scotiabank is required to make monthly payments to Gas Supplier at a fixed interest rate.

The offering launched on October 13, 2026, priced on October 21, 2026, and closed on October 30, 2026.

Scotiabank is a leading bank in the Americas, helping its customers, 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.

PEAK is a governmental organization and municipal gas joint action agency founded around 1998 to manage, negotiate, and provide bulk natural gas supply for its members and municipal utilities across Kentucky.

The Cleary corporate team included partners David Gottlieb and Hugh Conroy and associate Stav Harel.