TORONTO, Feb. 28,
2022 /CNW/ - Equitable Bank (the "Bank" or
"Equitable"), a wholly owned subsidiary of Equitable Group Inc.
(the "Company") (TSX: EQB) (TSX: EQB.PR.C) (TSX: EQB.R) today
announced the closing of two deposit notes for a combined total of
$500 million, with a $250 million 1.8-year fixed-rate tranche and a
$250 million 4-year fixed-rate
tranche.
This dual-tranche transaction, the first from the Bank in 2022,
is yet another milestone for Equitable's deposit note program,
coming in as the largest issuance to date.
The 1.8-year $250 million deposit
note was offered at a 2.753% fixed rate and is due
December 4, 2023, while the 4-year
$250 million deposit note was offered
at a 3.362% fixed rate and is due March
2, 2026. The deposit notes, priced respectively at 123 and
162 basis points over the interpolated Government of Canada curve, were buoyed by strong confidence
in the Bank's latest results and the recently announced agreement
to acquire a majority interest in Concentra Bank. This latest
transaction follows the previous largest single transaction for the
Bank back in November, when Equitable announced the closing of a
$400 million 2.5-year fixed rate
deposit note.
Despite market volatility, the offering was broadly supported
with the most investors to date in an Equitable deposit note
offering and was oversubscribed by 2.4x and 1.9x for the 1.8-year
and 4-year notes, respectively. Equitable's program now boasts
$1.95 billion of outstanding deposit
notes.
"Starting 2022 with another milestone issuance is an incredible
launchpad for the year ahead and proof of the strength of the
Bank's issuance program," said Chadwick
Westlake, Equitable's Chief Financial Officer. "Funding
diversification is more important than ever, and we are emboldened
by the investor confidence we have seen as our strategy matures. We
saw remarkable success in our 2021 program, and I am excited for
the year ahead."
The issuance was completed with Scotiabank, BMO Capital Markets,
CIBC Capital Markets and National Bank Financial Markets acting as
joint leads and bookrunners, supported by RBC Capital Markets, and
TD Securities acting as co-managers.
The deposit notes rank equally and rateably with all present and
future unsecured and unsubordinated liabilities of the Bank. The
deposit notes are not eligible for Canada Deposit Insurance
Corporation insurance.
About Equitable Group Inc.
Equitable Group Inc. ("EQB") trades on the Toronto Stock
Exchange (TSX: EQB, EQB.PR.C and EQB.R) and serves more than
325,000 Canadians through its wholly-owned subsidiary Equitable
Bank, Canada's Challenger Bank™.
Equitable Bank has a clear mandate to drive change in Canadian
banking to enrich people's lives. Founded over 50 years ago,
Equitable Bank provides diversified personal and commercial banking
and through its EQ Bank platform (eqbank.ca) has been named #1 Bank
in Canada on the Forbes World's
Best Banks 2021 list. Please visit equitablebank.ca for
details.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements made 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 risk management, statements about or containing
possible future issuances of deposit notes of the Bank, statements
made by our CFO and any 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.
This press release does not constitute an offer to sell or the
solicitation of any 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.
The Deposit Note has not been and will not be registered under
the United States Securities Act of 1933, as amended, or any state
securities laws and may not be offered or delivered, directly or
indirectly, or sold in the United
States absent an applicable exemption from the registration
requirements. This press release does not constitute an offer to
sell or the solicitation to buy nor shall there be any sale of the
securities in any State in which such offer, solicitation or sale
would be unlawful.
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SOURCE Equitable Bank