Latest funding brings Equitable's total
deposit note issuance in 2024 to a record-breaking $1.3 billion, reflecting continued confidence in
its mission to transform Canadian banking
TORONTO, Dec. 17,
2024 /PRNewswire/ - Equitable Bank, Canada's Challenger Bank™, announces another
key milestone as it closes a $500
million fixed rate deposit note offering, marking its
biggest-ever year for deposit note issuance with $1.3 billion executed through fiscal 2024. The
latest offering, the third this year, saw both tranches nearly 3x
oversubscribed with a final order book of $1.4 billion and record low credit spreads,
underscoring the unique appeal of Equitable Bank's mission to drive
change in Canadian banking and enrich lives.
The deposit notes were offered in two tranches: a re-opening of
the existing bonds maturing on September 24,
2026, adding $175 million at a
3.832% re-open yield, and a new $325
million deposit note offered at a 3.910% fixed rate coupon
maturing on December 17, 2027. The
transaction was successfully priced for the 1.8-year and 3-year
notes at 82 bps and 100 bps versus the Canada benchmark and Government of
Canada curve, respectively, with
the 1.8-year notes marking the lowest-ever fixed rate spread for an
Equitable Bank deposit note.
"This latest issuance marks the most successful year yet in
Equitable Bank's diverse funding journey and is a clear validation
of our strategic direction and mission to offer a better way to
bank for Canadians," said Chadwick
Westlake, SVP and CFO, Equitable Bank. "The strong interest
and tight pricing we've seen throughout the year is a huge vote of
confidence in our fundamentals and ability to deliver long-term
value. We look forward to building on this success next year."
The issuance was completed with Scotia Capital, BMO Nesbitt
Burns, CIBC World Markets and RBC Dominion Securities acting as
joint leads and bookrunners, with National Bank Financial and TD
Securities 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 nearly
700,000 customers and more than six million credit union members
through its businesses. It is a wholly owned subsidiary of EQB Inc.
(TSX: EQB), a leading digital financial services company with
$127 billion in combined assets under
management and administration (as at October
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
