Equitable Bank Completes Successful $300 Million Deposit Note Issuance Amid Strong Investor Confidence

Equitable Bank's Remarkable $300 Million Deposit Note Issuance

Equitable Bank, recognized as Canada’s Challenger Bank™, has made headlines with the recent closure of a significant $300 million floating rate deposit note issuance. This landmark transaction highlights the bank's impressive fundraising capabilities and reinforces its strategic vision for long-term growth.

In the financial world, issuance of deposit notes is a critical activity, often reflective of a bank's financial health and investor confidence. The recent issuance by Equitable Bank marks the narrowest spread on record for deposits of this duration, suggesting a robust interest from investors keen to support its growth trajectory. Not only was the issuance oversubscribed by 2.0 times—the final order book peaked at an impressive $605.6 million—but it allowed the bank to increase the offering from its initial $200 million target.

David Wilkes, the VP and Head of Finance at Equitable Bank, expressed pride in the response from investors, stating, "Investor response to this issuance shows their deep confidence in our strong foundation, the caliber of our leadership, and the significant growth potential ahead of us." This reflects a growing recognition of the bank’s commitment to innovation in the Canadian banking landscape and its potential to reshape financial services for Canadians.

The newly issued deposit notes carry a coupon rate of CORRA plus 90 basis points and have a maturity date set for August 3, 2027. This structuring not only secures an attractive rate for investors but also significantly bolsters Equitable Bank's funding strategy, enhancing its capacity to innovate and offer improved banking solutions.

The issuance was facilitated through a collective effort of reputable financial institutions, including BMO Capital Markets, CIBC Capital Markets, National Bank Financial Markets, and Scotiabank as joint lead managers. Additionally, RBC Capital Markets and TD Securities took the role of co-managers, contributing their expertise to ensure the successful execution of this transaction. Together, these partnerships highlight the confidence that top financial institutions have in Equitable Bank and its strategic initiatives.

Equitable Bank aims to drive substantial change within the Canadian banking sector to improve the lives of its customers. As the country's seventh-largest bank by assets and a wholly owned subsidiary of EQB Inc. (TSX EQB), it provides tailored personal and commercial banking services, successfully catering to over 742,000 customers and over six million credit union members. Its digital platform, EQ Bank, consistently receives accolades, having been recognized as one of the top banks in Canada on the Forbes World’s Best Banks list since 2021.

The current issuance not only reinforces Equitable Bank's funding strategy but also reflects the bank's long-term vision toward sustainable growth and banking reform, where all Canadians can benefit from improved financial services. The confidence shown by investors in this issuance underpins Equitable Bank’s ongoing mission to enhance customer experiences and deliver lasting value.

With equity markets and deposit notes under close scrutiny, Equitable Bank is well-positioned to navigate any economic challenges, leveraging its strong foundation and innovative capabilities to continue to grow and evolve as a leader in the financial services sector. Equitable Bank is set to redefine what banking means for Canadians in the years ahead, confirming its status as a pivotal player in shaping the future of finance in Canada.

For further information, inquiries can be directed to David Wilkes, the VP and Head of Finance at Equitable Bank. Interested parties can also connect with Equitable Bank on various platforms, including LinkedIn and its official website, to stay updated on upcoming initiatives and developments.