TORONTO, May 3, 2017 /CNW/ - Equitable Group Inc.
(TSX: EQB and EQB.PR.C) ("Equitable" or the "Company") today
confirmed that the syndicate of lenders supporting Equitable Bank's
recently announced $2 billion
backstop secured funding facility has been expanded to include all
six of Canada's largest banks. The
syndicate now includes Bank of Montreal, CIBC, National Bank, The Royal Bank
of Canada, Scotiabank and The
Toronto-Dominion Bank.
"Bankers know the industry best and if all six of Canada's largest banks have the confidence to
support Equitable Bank, it is evident that our customers, whether
they be savers and depositors or borrowers should have similar
confidence," said Andrew Moor,
President and CEO of Equitable Bank. "Bankers value great corporate
governance, strong internal controls, sound capital positions, risk
and compliance awareness and ethical, diligent and prudent
employees and that is what we have at Equitable as a Schedule I
bank and member of the CDIC."
Mr. Moor thanked the leaders of all six banks, their executive
teams and the employees involved in the detailed due diligence
process "for their tremendous personal effort over a few short days
to make such an enormous supply of backstop liquidity available to
Equitable Bank. Beyond the capital and credit assessment, we
have benefitted greatly from their wise advice and judgement over
the past few days. We are members of a strong banking industry
serving Canadians from coast to coast. Thank you."
On May 1, 2017, Equitable
announced that it had received a letter of commitment for a
$2 billion backstop secured funding
facility. The terms of the facility are as set out in the Company's
news release dated May 1, 2017. The
interest rate on the facility is competitive with the spreads on
the Bank's most recent deposit note issuance and as such, if the
facility is used, it will allow Equitable to continue growing
profitably.
"We believe the mere presence of this facility sends a strong
signal to the marketplace that Equitable has more than enough
downside protection in place should last week's industry
developments continue to make news in future periods," said
Tim Wilson, Vice President and Chief
Financial Officer. "As such, this is a prudent, proactive move on
our part as the facility complements our proven, traditional
sources of liquidity and funding."
ABOUT EQUITABLE GROUP INC.
Equitable Group Inc. is a growing Canadian financial services
business that operates through its wholly-owned subsidiary,
Equitable Bank. Equitable Bank is Canada's ninth largest independent Schedule I
bank and offers a diverse suite of residential lending, commercial
lending and savings solutions to Canadians. Through its proven
branchless approach and customer service focus, Equitable Bank has
grown to almost $23 billion of Assets
Under Management. Most recently, Equitable Bank launched a
digital banking operation, EQ Bank, along with its flagship
product the EQ Bank Savings Plus Account. Equitable
Bank employs nearly 600 dedicated professionals across the country,
and is a 2017 recipient of Canada's Best Employer Platinum Award, the
highest bestowed by AON. For more information about Equitable Bank
and its products, please visit equitablebank.ca.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements made by the Company in this news release, in other
filings 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 about the Company's objectives, strategies and
initiatives, financial result expectations and other statements
made herein, whether with respect to the Company's businesses or
the Canadian economy. Generally, forward-looking statements can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "planned", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases which state that certain
actions, events or results "may", "could", "would", "might" 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 such forward-looking statements, including but not
limited to risks related to capital markets and additional funding
requirements, fluctuating interest rates and general economic
conditions, legislative and regulatory developments, the nature of
our customers and rates of default, and competition as well as
those factors discussed under the heading "Risk Management" in the
Management's Discussion and Analysis and in the Company's documents
filed on SEDAR at www.sedar.com. All material 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 their knowledge of the
current credit, interest rate and liquidity conditions affecting
the Company and the Canadian economy. Although the Company believes
the assumptions used to make such statements are reasonable at this
time and has attempted to identify in its continuous disclosure
documents important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. 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, continued acceptance of its
products in the marketplace, 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. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company
does not undertake to update any forward-looking statements that
are contained herein, except in accordance with applicable
securities laws.
SOURCE Equitable Group Inc.