TORONTO, June 25, 2021 /CNW/ – Equitable Bank (the "Bank"
or "Equitable"), a wholly owned subsidiary of Equitable Group Inc.
(the "Company") (TSX: EQB and TSX: EQB.PR.C) today announced the
successful closing of an offering of an additional $150 million principal amount of 1.774%
fixed rate deposit notes (the "Deposit Notes") due
September 21, 2023, which has been
added to the $200 million principal
amount of the same series of deposit notes issued on September 16, 2020, for an aggregate series
principal amount of $350 million outstanding.
The $150 million re-opening priced
at 90 basis points over the interpolated Government of Canada curve, and represents the tightest ever
for the Bank with a re-opening yield of 1.384%. The offering was
supported by a broad investor base, including several new
investors, and was approximately four times oversubscribed. This
high demand reflects the Bank's strong credit performance.
Equitable's program now boasts $1.05
billion of outstanding deposit notes.
"We have continued to express the importance of expanding our
deposit note program and executing on our strategy to diversify our
sources of funding. This issuance builds off the enormous successes
we've had to date," said Chadwick
Westlake, Chief Financial Officer of Equitable Bank.
"Today's announcement is further validation that in our quest to
enrich the lives of Canadians, our focus remains steadfast on
strengthening our core to allow us to deliver greater value and
smarter banking solutions for our customers."
The issuance was completed with Scotia Capital, BMO Nesbitt
Burns and CIBC World Markets acting as joint leads and bookrunners,
supported by National Bank Financial, RBC Dominion Securities and
TD Securities acting as co-managers. The Deposit Notes ranks
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. (Equitable or the Bank), trades on the
Toronto Stock Exchange (TSX: EQB) and (TSX: EQB.PR.C) and serves
over a quarter million Canadians through Equitable Bank,
Canada's Challenger Bank™.
Equitable Bank has grown to become the country's eighth largest
independent Schedule I bank with a clear mandate to drive real
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) is
a recognized innovator in digital services. Please visit
equitablebank.ca for details.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements made by the Company in the sections of 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 President and CEO, 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.
SOURCE Equitable Bank