Equitable Bank closes $350 million deposit note issuance

Issuance represents largest in over three years, indicating growing investor interest in trajectory of Canada's Challenger Bank

TORONTO, May 5, 2025 /PRNewswire/ - Equitable Bank, Canada's Challenger Bank™, announces it has closed a $350 million fixed rate deposit note that represents the bank's second largest on record, bringing its total program to $2.15 billion of outstanding deposit notes.

The three-year $350 million deposit note was offered at a 3.738% fixed rate and matures on May 5, 2028. The transaction, successfully priced at the tight end of target spread guidance at 118 bps above the Government of Canada curve, enjoyed an oversubscribed order book of 2.5x times with support from both existing and new investors. Additionally, order book strength allowed the bank to upsize the initial offering to the top end of its announced range of $350 million.

"This latest issuance is a clear signal that investors remain confident in our strategy, performance and vision for the future of Canadian banking," said Andrew Moor, president and CEO, Equitable Bank. "This strong reception reinforces the momentum we're carrying into the year ahead as we continue to scale with discipline and deliver long-term value."

The issuance was completed with National Bank Financial Markets, RBC Capital Markets, Scotiabank and TD Securities acting as joint leads and bookrunners, with BMO Capital Markets and CIBC Capital Markets supporting as co-managers.

The deposit notes rank equally and rateably with all of Equitable Bank's present and future unsecured and unsubordinated liabilities, and deposit notes are not eligible for Canada Deposit Insurance Corporation insurance.

About Equitable Bank

Equitable Bank has a clear mission to drive change in Canadian banking to enrich people's lives. As Canada's Challenger Bank™ and seventh largest bank by assets, it leverages technology to deliver exceptional personal and commercial banking experiences and services to more than 700,000 customers and more than six million credit union members through its businesses. It is a wholly owned subsidiary of EQB Inc. (TSX: EQB), a leading digital financial services company with $132 billion in combined assets under management and administration (as at January 31, 2025). Through its digital EQ Bank platform (eqbank.ca), its customers have named it one of the top banks in Canada on the Forbes World's Best Banks list since 2021.     

To learn more, please visit eqb.investorroom.com or connect with us on LinkedIn.

Investor contact:
David Wilkes
VP and Head of Finance
[email protected]

Media contact:
Maggie Hall
Director, PR & Communications
[email protected]

Cautionary Note Regarding Forward-Looking Statements

Statements made in this news release include forward-looking statements within the meaning of applicable securities laws ("forward-looking statements"). These statements include, but are not limited to, statements about EQB Inc.'s (the "Company") objectives,  strategies  and initiatives,  financial  results, expectations  and  risk  management, statements about or containing possible future issuances of deposit notes of Equitable Bank (the "Bank"), a wholly owned subsidiary of the Company, statements made by Equitable Bank's chief financial officer and any other statements made herein, whether with respect to the Company's and Bank'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 Company's Management's Discussion and Analysis and in the Company's other documents filed on SEDAR+ at www.sedarplus.ca. 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, the Bank and the Canadian economy. Although the Company and the Bank believe 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 and the Bank do not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.

The deposit notes have 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. This press release does not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction.

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SOURCE Equitable Bank