Equitable Bank closes record-setting $300 million deposit note

TORONTO, April 9, 2024 /CNW/ - Equitable Bank, Canada's Challenger Bank™, announces its latest milestone as it closes a $300 million fixed rate deposit note and returns to this funding market for the first time since 2022. Investor demand led to an issuance at the top end of the announced target size and included the largest-ever number of investors, jointly reinforcing the strength and stability of Equitable Bank's challenger bank value proposition.

The 2.75-year $300 million deposit note was offered at a 5.16% fixed rate and matures on January 11, 2027. Approximately one-third of the 47 investors were new to Equitable Bank's deposit note program, and the total order book was 4.2 times oversubscribed. The transaction, priced at 130bps over the Government of Canada curve, represents Equitable Bank's tightest-ever new issue spread for this tenor and also resulted in significant secondary curve re-pricing.

"The success of this milestone issuance reflects both the efficacy of our funding diversification strategy as well as rapidly growing investor appetite for Equitable Bank's unique challenger story," said Chadwick Westlake, chief financial officer. "Investors are clearly ready for the new kind of bank that we have championed since day one. We are invigorated by this outsized response to our offering as we continue to plan for a bold future in which funding diversification will remain a critical lever."

The issuance was completed with CIBC World Markets, Scotia Capital and TD Securities acting as joint leads and bookrunners, supported by BMO Nesbitt Burns, National Bank Financial and RBC Dominion Securities as co-managers. This deposit note ranks 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 607,000 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 $119 billion in combined assets under management and administration (as at January 31, 2024). Through its digital EQ Bank platform (eqbank.ca), its customers have named it the best bank 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:
Sandie Douville
VP, Investor Relations & ESG Strategy
[email protected] 

Media contact:
Maggie Hall
Director, PR & Communications  
[email protected] 

Cautionary Note Regarding Forward-Looking Statements
Statements  made  in  this  news  release,  in other  filings  with  Canadian  securities regulators  and  in  other communications  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 the Equitable Bank (the "Bank"), a wholly owned subsidiary of the Company, statements made by EQB's CFO 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 Management's Discussion and Analysis and in the Company's documents filed on SEDAR at www.sedar.com. 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 Note has 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.

SOURCE Equitable Bank