Bank of Nova Scotia (BNS.TO) said Friday that it completed its acquisition of an additional 10% pro-forma ownership stake in KeyCorp following regulatory approval from the Board of Governors of the Federal Reserve System.

Scotiabank secured the stake through newly issued common shares priced at US$17.17 apiece or US$2.0 billion in total.

In August, Scotiabank announced that it had agreed to acquire an approximately 14.9% pro-forma ownership stake in KeyCorp for total consideration of about US$2.8 billion. The bank previously closed the initial investment of 4.9% on Aug. 30 and has now completed both stages of the investment.

"Our investment in KeyCorp represents a cost-effective, low-risk approach to deploying capital into the U.S. while boosting returns for our shareholders," said Scott Thomson, Scotiabank's president and CEO. "We are pleased to have closed this transaction, which is consistent with our commitment to allocate capital from developing markets to developed markets in North America."

Scotiabank said the impact to common equity tier 1 ratio from both stages of the transaction is expected to be about -55 basis points.

The bank said its 14.9% ownership interest will be classified as an investment in associate for accounting purposes.