#Canada #Toronto #Equitable Bank #Covered Bonds

Equitable Bank Strengthens Its Funding Strategy with €500 Million Covered Bond Issuance

Equitable Bank, known as Canada's Challenger Bank™, has successfully completed the issuance of €500 million (approximately CAD $789 million) in covered bonds. This latest offering marks a significant milestone as it represents the Bank's sixth covered bond issuance since launching its CAD $3.0 billion Global Legislative Covered Bond Programme in 2021.

President and CEO Andrew Moor expresses his satisfaction with the gesture, stating, "We are pleased to see continued investor support for Equitable Bank's covered bond program. This program is a key part of our broader funding diversification strategy, enabling us to execute on our mission to drive change in Canadian banking to enrich people's lives." Such sentiments underscore the importance of diversifying funding sources within the banking industry, especially in an ever-evolving financial landscape.

The issued covered bonds carry a 2.375% coupon and are priced to yield 2.52%, with a maturity date set for September 28, 2028. Furthermore, the bonds have received commendable ratings from credit rating agencies, receiving an Aa1 rating from Moody's and an AA+ rating with a positive outlook from Fitch. Overall, the issuance of covered bonds stands out as a cost-effective option for the Bank's wholesale funding needs.

This successful bond offering was facilitated through collaboration with several reputable financial institutions. The transaction saw Barclays Bank, Commerzbank, DZ BANK, Ernst Group Bank, Landesbank Baden-Württemberg, Scotiabank, and TD Bank serve as joint lead managers. Their involvement reflects the confidence in Equitable Bank's strategy and operational integrity amid fluctuating market conditions.

In the context of the United Kingdom and within the European Economic Area (EEA), the bond offering is specifically targeted at qualified investors and investment professionals, adhering to local regulatory guidelines regarding financial communications.

Equitable Bank's commitment to change aligns with its operational philosophy. It seeks to offer innovative and accessible banking solutions that enrich people’s lives, particularly in Canada where it strives to stand out among traditional banks. As Canada's seventh-largest bank by assets, Equitable Bank actively utilizes technology to foster a heightened banking experience, serving over 742,000 customers and six million credit union members. The digital platform, EQ Bank, has been recognized as one of the top banks on the Forbes World's Best Banks list since 2021, affirming its consistent delivery of quality service.

Grounded in a vision to drive meaningful change in the banking sector, Equitable Bank exemplifies about putting customers' needs first while surmounting traditional banking challenges. By leveraging the latest technologies and embracing innovation, the Bank sets out to redefine banking experiences in a customer-centric manner.

The latest €500 million covered bond issuance highlights the continued success and growth potential of Equitable Bank as it navigates the complexities of the financial landscape. As the Bank prepares for the future, its ongoing pursuit of diversified funding aims to solidify its role as a key player in the Canadian banking scene.

For investors and analysts looking to follow Equitable Bank's journey, more insights and updates are available through its investor relations portal and various channels on social media such as LinkedIn.