EQB closes $300-million deposit note issuance

Executive Summary

• Equitable Bank (a subsidiary of EQB Inc.) successfully closed a $300 million floating-rate deposit note issuance, marking the bank's tightest spread on record for comparable terms.
• The transaction was 2.0 times oversubscribed, with a final order book of $605.6 million, allowing the bank to upsize the offering from an initial launch size of $200 million.
• The issuance provides competitively priced funding and favorable repricing of the bank's secondary curve, reflecting strong investor confidence in the bank's financial resilience and growth prospects.

Key Details

• Transaction Size: $300 million (upsized from $200 million launch size).
• Instrument: Two-year floating-rate deposit notes.
• Coupon: CORRA plus 90 basis points (bps).
• Maturity Date: August 3, 2027.
• Oversubscription: 2.0 times oversubscribed.
• Order Book: Final order book totaled $605.6 million.
• Strategic Impact: Represents the tightest spread on record for deposit notes of a comparable term; resulted in favorable repricing of the bank's secondary curve.
• Lead Underwriters: BMO Capital Markets, CIBC Capital Markets, National Bank Financial Markets, and Scotiabank (joint leads and bookrunners).
• Co-Managers: RBC Capital Markets and TD Securities.
• Ranking: Notes rank equally and rateably with all of Equitable Bank's present and future unsecured and unsubordinated liabilities.
• Insurance Status: Deposit notes are not eligible for Canada Deposit Insurance Corp. (CDIC) insurance.

Notable Quotes

• "Investor response to this issuance shows their deep confidence in our strong foundation, the calibre of our leadership and the significant growth potential ahead of us," said David Wilkes, vice-president and head of finance at Equitable Bank. "This issuance provides a competitively priced source of funding that strengthens our ability to innovate and reshape banking for the better for all Canadians, while creating lasting, meaningful value for our investors."