Equitable Bank closes $500 million deposit note offering, capping off record year in its funding strategy

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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.

EQ Bank/Equitable Bank logo (CNW Group/Equitable Bank)
EQ Bank/Equitable Bank logo (CNW Group/Equitable Bank)

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.