#Canada #Toronto #Equitable Bank #Challenger Bank #Deposit Notes

Equitable Bank Closes $350 Million Deposit Note Issuance

On May 5, 2025, Equitable Bank, recognized as Canada's Challenger Bank™, announced the successful closure of a significant deposit note transaction worth $350 million. This issuance marks the bank's second-largest deposit note issuance on record and showcases a major step forward in its ongoing mission to transform Canadian banking. The total amount of outstanding deposit notes has now reached a remarkable $2.15 billion.

The newly issued three-year deposit note features a fixed interest rate of 3.738%, with a maturity date set for May 5, 2028. Notably, the issuance was strategically priced at the tight end of the target spread guidance, at 118 basis points above the Government of Canada curve. The demand for these notes exceeded expectations, resulting in an oversubscribed order book—an impressive 2.5 times the initial offering. This robust investor interest is particularly significant as it reflects growing confidence in Equitable Bank's future and its strategic vision.

Andrew Moor, President and CEO of Equitable Bank, expressed optimism about the issuance, stating, "This latest issuance is a clear signal that investors remain confident in our strategy, performance, and vision for the future of Canadian banking." Moor highlighted that the strong reception from investors reinforces the momentum the bank is experiencing as it looks to scale operations prudently while aiming to deliver long-term value for its clientele.

The issuance of these deposit notes was facilitated by a consortium of financial institutions, including National Bank Financial Markets, RBC Capital Markets, Scotiabank, and TD Securities, who acted as joint leads and bookrunners. BMO Capital Markets and CIBC Capital Markets also played essential roles as co-managers, ensuring a smooth and successful transaction.

It's important to note that these deposit notes rank equally and rateably alongside all of Equitable Bank's present and future unsecured and unsubordinated liabilities. However, potential investors should be aware that these deposit notes do not qualify for coverage under the Canada Deposit Insurance Corporation (CDIC).

Equitable Bank's Vision and Mission

Equitable Bank operates with a clear mission aimed at transforming the Canadian banking landscape to enhance the lives of its clients. As Canada's seventh largest bank by assets, the organization leverages advanced technology to provide exceptional personal and commercial banking experiences. Currently, it serves over 700,000 customers alongside more than six million credit union members through its diversified service offerings.

Equitable Bank is a wholly owned subsidiary of EQB Inc. (TSX EQB), a prominent player within the Canadian financial services sector, managing combined assets amounting to $132 billion as of January 31, 2025. The bank's digital platform, EQ Bank (eqbank.ca), has been repeatedly recognized as one of Canada's top banks according to Forbes’ World’s Best Banks ranking since 2021.

In conclusion, the successful closure of the $350 million deposit note issuance not only stands as a testament to the growing investor interest but also highlights Equitable Bank’s strategic growth trajectory. As the bank continues to innovate and expand its offerings, it seeks to redefine banking norms and provide widespread value to customers across Canada. This initiative paves the way for future growth and reinforces Equitable Bank’s commitment to evolving its services in line with customer needs and market demands. As an institution, it remains steadfast in its aim to drive meaningful change in the banking sector, promising exciting developments on the horizon.

For more information about Equitable Bank and its services, visit eqb.investorroom.com.