CIBC to Issue 6.500% NVCC AT1 Limited Recourse Capital Notes

Executive Summary

• CIBC announced a US$700 million public offering of 6.500% Fixed‑Rate Reset Limited Recourse Capital Notes (Series 9, NVCC AT1).
• The notes bear a 6.500% annual coupon payable quarterly until July 28 2031, after which the rate resets every five years to the 5‑year U.S. Treasury plus 2.727%; maturity is July 28 2086.
• Net proceeds will be used for general corporate purposes, including possible redemption of existing capital securities and repayment of other liabilities.

Key Details

• Offering Size: US$700 million of Limited Recourse Capital Notes (LRCNs).
• Interest Rate: 6.500% per annum, payable quarterly, fixed until July 28 2031.
• Rate Reset: After July 28 2031, interest resets every five years to “5‑year U.S. Treasury rate + 2.727%”.
• Maturity Date: July 28 2086.
• Expected Closing: January 13 2026.
• Redemption Rights: CIBC may redeem the LRCNs on July 28 2031 and on each January 28, April 28, July 28, and October 28 thereafter with prior written approval of the Superintendent of Financial Institutions (Canada), providing 10‑60 days’ notice.
• Underlying Security: In connection with the notes, CIBC will issue Non‑Cumulative 5‑Year Fixed Rate Reset Class A Preferred Shares (Series 64) held by Computershare Trust Company of Canada as trustee of the Limited Recourse Trust; these shares back the LRCNs in case of non‑payment.
• Use of Proceeds: General corporate purposes, potentially including redemption of outstanding CIBC capital securities and repayment of other liabilities.
• Book‑Running Managers: CIBC World Markets Corp., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, UBS Securities LLC.
• Regulatory Filing: Registration statement filed with the U.S. SEC; offering made via prospectus supplement and base prospectus (available on EDGAR).

Notable Quotes

(No executive quotes were included in the release.)