Equitable Bank announces another important step in growth and diversification with the highly successful inaugural covered bond issue in Europe


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TORONTO, September 16, 2021 / CNW / – Equitable Bank (the “Bank“), is pleased to announce that it has issued € 350,000,000 in statutory covered bonds due September 16, 2024 (the “Covered bonds“).

Equitable Bank announces another important step in growth and diversification with the very successful inaugural issue of covered bonds in Europe (CNW Group / Equitable Bank)

The 3-year covered bonds, which are in line with the Bank’s stated objectives of diversifying its funding structure and reducing funding costs, will be listed on the Irish Stock Exchange (Euronext Dublin).

“This is a decisive step for from Canada Challenger Bank,” noted Chadwick westlake, Chief Financial Officer of the Bank. “We are delighted with this inaugural issue and are delighted to have attracted a wide range of new international investors.” In total, more than 40 investors participated in the offering in 15 countries and the issue was almost three times oversubscribed.

“The support we’ve seen has been phenomenal. We believe this success is a strong source of third party validation of the Bank’s growth and strategic vision, ”continued Westlake.

The Bank issued 350 million euros of covered bonds with a spread of 15 basis points against swaps in euros. All fees included, this transaction introduces a source of the lowest wholesale cost of funding available to the Bank by a significant margin.

“The show, which we hope will be the first in a series over the next several years, helps support the funding of our growing Personal and Commercial Banking assets. Over the longer term, lower financing costs for the Bank translate into benefits for our customers, employees and shareholders, ”said Westlake.

This issue gives the Bank access to an additional source of financing in one of the oldest debt markets in the world and which has proven to be resilient in the face of stress.

The Bank announced on July 27, 2021 this approval was received from the Canada Mortgage and Housing Corporation (“CMHC“) to establish a CAD $ 2.0 billion covered bond legislative program (the “Program“) in accordance with the Guide to Registered Covered Bonds in Canada, published by CMHC. The placement of the Covered Bonds will be made under the program.

Interest and principal payments on the Covered Bonds are guaranteed by EQB Covered Bond (Legislative) Guarantor Limited Partnership (the “Guarantor”) and will be secured by the assets of the Guarantor, including a portfolio of uninsured residential mortgages issued and managed by the Bank and sold to the Guarantor.

Information on the Bank’s covered bonds is available at: https://www.equitablebank.ca/about-us/investor-relations/covered-bonds-terms-of-access

In the United Kingdom, this advertisement is distributed only to persons who: (A) (i) are “investment professionals” specified in Section 19 (5) of the Financial Services and Markets Act (Financial Promotion) Ordinance 2005 (the “Order“) or (ii) high net worth entities falling under section 49 (2) (a) to (d) of the Ordinance or (iii) are other persons to whom it may otherwise be legally disclosed; and (B) are “qualified investors” within the meaning of Article 2 (e) of Regulation (EU) 2017/1129 insofar as it is part of UK domestic law under the European Union (Withdrawal) Act 2018 (all such persons being referred to together by “Persons concerned“). In the European Economic Area (the”EEE“), this announcement is directed only and directed only to persons in Member States who are” qualified investors “within the meaning of Article 2 (e) of Regulation ((EU) 2017/1129 (“Qualified investors“). This advertisement must not be used or relied on (i) in the United Kingdom, by persons who are not Relevant Persons, and (ii) in an EEA member state, by persons who are not not Qualified Investors. the investment or investment activity to which this announcement relates is only available to: (i) in the UK, Relevant Persons; and (ii) in any EEA Member State, Qualified Investors, and will be engaged only with such persons.

About Equitable

Equitable Group Inc. (the “Company”) is listed on the Toronto Stock Exchange (TSX: EQB and EQB.PR.C) and serves over a quarter of a million Canadians through Equitable Bank, from Canada Bank Challenger â„¢. Equitable Bank has grown to be the country’s eighth independent Schedule I bank with a clear mandate to drive real change in the Canadian banking industry to enrich people’s lives. Founded more than 50 years ago, Equitable Bank offers diversified personal and commercial banking services and, thanks to its EQ Bank platform (eqbank.ca), was named bank n ° 1 in Canada on Forbes’ list of the world’s best banks 2021. Please visit fairbank.ca for details.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Statements made in this press release, in other documents filed with Canadian securities regulators and in other communications include forward-looking statements within the meaning of applicable securities laws (“forward-looking statements”). These statements include, but are not limited to, statements regarding the Company’s objectives, strategies and initiatives, financial performance expectations and risk management, statements regarding or containing future covered bond issues. of the Bank, statements made by our Chief Financial Officer and any other statement made herein, whether relating to the business of the Company or the Canadian economy. Generally, forward-looking statements can be identified by the use of forward-looking terms such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “expected” , “Planned”, “considers”, “plans”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and expressions which state that certain actions , events or results “could”, “could”, “would”, “could” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of the Company to be materially. different from those expressed or implied by these forward-looking statements. forward-looking statements, including, but not limited to, risks relating to capital markets and additional funding requirements, fluctuating interest rates and general economic conditions, legislative and regulatory developments, the nature of our clients and default rates, and the competition as well as the factors discussed under “Risk Management” in the MD&A and in the Company’s documents filed on SEDAR at www.sedar.com. All significant assumptions used in making forward-looking statements are based on management’s knowledge of current business conditions and expectations of future business conditions and trends, including knowledge of current credit, interest rate and liquidity conditions. affecting society and the Canadian economy. Although the Company believes that the assumptions used to make such statements are reasonable at this time and that it has attempted to identify in its continuous disclosure documents significant factors that could cause actual results to differ substantially than those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or anticipated. Certain material assumptions are applied by the Company in making forward-looking statements, including, without limitation, assumptions regarding its continued ability to fund its mortgage business at current levels, a continuation of the current level of economic uncertainty that affects real estate market conditions, following the acceptance of its products in the market, as well as no material changes in its operating cost structure and the current tax regime. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Therefore, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements contained in this document, except in accordance with applicable securities laws.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in any province, state or jurisdiction in which such offer or solicitation would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.

Equitable Bank SOURCE

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