Latest issuance 4.7x oversubscribed,
reflecting strong confidence in long-term strategy and challenger
bank value proposition
TORONTO, Sept. 24,
2024 /PRNewswire/ - Equitable Bank, Canada's Challenger Bank™, announces a
significant milestone in its funding strategy as it closes a
$500 million fixed rate deposit note.
With a record-breaking $2.3 billion
order book that was 4.7x oversubscribed among 44 unique investors,
the latest issuance is a clear testament to the market's appetite
for Equitable Bank's unique challenger bank position.
The deposit note was issued in two tranches: a 2-year
$200 million deposit note was offered
at a 3.92% fixed rate and matures on September 24, 2026, and a 3.5-year $300 million deposit note was offered at a 3.99%
fixed rate and matures on March 24,
2028. The transaction, successfully priced for the 2-year
and 3.5-year notes at 107 bps and 127 bps above the Government of
Canada curve, respectively,
represent negative new issue concessions of 3 bps for each tranche
and led to further repricing of Equitable Bank's secondary
curve.
"The overwhelming response from investors highlights the appeal
of our strategy and the important and evolving role of Equitable in
Canada's banking sector," said
Chadwick Westlake, chief financial
officer, Equitable Bank. "The attractive pricing we achieved
underscores the trust investors place in our ability to deliver
sustainable value, and we are energized as we continue building on
this momentum to deliver long-term growth."
The issuance was completed with BMO Nesbitt Burns, CIBC World
Markets, RBC Dominion Securities and TD Securities acting as
joint leads and bookrunners, with National Bank Financial and
Scotia Capital supporting as co-managers.
The deposit notes rank equally and rateably with all of
Equitable Bank's present and future unsecured and unsubordinated
liabilities, and deposit notes are not eligible for Canada Deposit
Insurance Corporation insurance.
About Equitable Bank
Equitable Bank has a clear mission to drive change in Canadian
banking to enrich people's lives. As Canada's Challenger
Bank™ and seventh largest bank by assets, it leverages technology
to deliver exceptional personal and commercial banking experiences
and services to over 670,000 customers and more than six million
credit union members through its businesses. It is a wholly owned
subsidiary of EQB Inc. (TSX: EQB and EQB.PR.C), a leading digital
financial services company with $125 billion in combined
assets under management and administration (as at July 31,
2024). Through its digital EQ Bank platform (eqbank.ca), its
customers have named it one of the top banks in Canada on
the Forbes World's Best Banks list since 2021.
To learn more, please
visit eqb.investorroom.com or connect with us
on LinkedIn.
Investor contact:
Mike Rizvanovic
Managing Director, Investor Relations
investor_enquiry@eqb.com
Media contact:
Maggie Hall
Director, PR & Communications
maggie.hall@eqbank.ca
Cautionary Note Regarding Forward-Looking Statements
Statements made in this news release include forward-looking
statements within the meaning of applicable securities laws
("forward-looking statements"). These statements include, but are
not limited to, statements about EQB Inc.'s (the "Company")
objectives, strategies and initiatives,
financial results, expectations and risk
management, statements about or containing possible future
issuances of deposit notes of Equitable Bank (the "Bank"), a wholly
owned subsidiary of the Company, statements made by Equitable
Bank's chief financial officer and any other statements made
herein, whether with respect to the Company's and Bank's businesses
or the Canadian economy. Generally, forward-looking statements can
be identified by the use of forward-looking
terminology such as "plans",
"expects" or "does
not expect", "is
expected", "budget", "scheduled",
"planned", "estimates", "forecasts", "intends",
"anticipates" or "does not
anticipate", or "believes", or variations
of such words and phrases which
state that certain actions, events
or results "may", "could", "would",
"might" or "will be taken",
"occur" or "be achieved". Forward-looking
statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, closing of transactions, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking statements, including but not
limited to risks related to capital markets and additional funding
requirements, fluctuating interest rates and general economic
conditions, legislative and regulatory developments, the nature of
our customers and rates of default, and competition as well as
those factors discussed under the heading "Risk Management"
in the Company's Management's Discussion and Analysis and in the
Company's other documents filed on SEDAR+ at www.sedarplus.ca. All
material assumptions used in making forward-looking statements are
based on management's knowledge of current business conditions and
expectations of future business conditions and trends, including
their knowledge of the current credit, interest rate and liquidity
conditions affecting the Company, the Bank and the Canadian
economy. Although the Company and the Bank believe the assumptions
used to make such statements are reasonable at this time and has
attempted to identify in its continuous disclosure documents
important factors that could cause actual results to differ
materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended. Certain material assumptions
are applied by the Company in making forward-looking statements,
including without limitation, assumptions regarding its continued
ability to fund its mortgage business at current levels, a
continuation of the current level of economic uncertainty that
affects real estate market conditions, continued acceptance of its
products in the marketplace, as well as no material changes in its
operating cost structure and the current tax regime. There can be
no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company and
the Bank do not undertake to update any forward-looking statements
that are contained herein, except in accordance with applicable
securities laws.
The deposit notes have not been and will not be registered under
the United States Securities Act of 1933, as amended, or any state
securities laws and may not be offered or delivered, directly or
indirectly, or sold in the United
States. This press release does not constitute an offer to
sell or the solicitation of any offer to buy securities in any
jurisdiction.
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SOURCE Equitable Bank
