The lender said the news reflects 'strong investor confidence' in its growth potential
Equitable Bank has completed a $300 million floating rate deposit note issuance, the bank has revealed. The issuance, which was 2.0 times oversubscribed, reflects what the bank called “strong investor confidence” in its financial stability and future growth.
The notes, which mature on August 3, 2027, were issued with a coupon of CORRA plus 90 basis points. The final order book for the offering totalled $605.6 million, allowing the bank to increase the size of the issuance from its original launch size of $200 million. The bank stated that the transaction led to a “favourable repricing” of its secondary curve and that the spread was the “tightest on record” for a comparable term.
“Investor response to this issuance shows their deep confidence in our strong foundation, the calibre of our leadership, and the significant growth potential ahead of us,” said David Wilkes, vice president and head of finance at Equitable Bank.
He added that the issuance provides a “competitively priced source of funding” that will strengthen the bank’s ability to innovate and provide value for investors.
A group of financial institutions served as joint leads and bookrunners for the issuance, including BMO Capital Markets, CIBC Capital Markets, National Bank Financial Markets, and Scotiabank. RBC Capital Markets and TD Securities supported as co-managers.
Equitable Bank stated that the deposit notes are not eligible for Canada Deposit Insurance Corporation insurance and rank equally with all of the bank’s other unsecured and unsubordinated liabilities.
According to the Bank of Canada’s Financial Stability Report, the financial system began the year with “increased resilience.”
However, the report also highlighted that challenges arising from a global trade conflict could have severe economic consequences. The report noted that fixed-income and core funding markets were functioning well and that debt issuance conditions remained solid, providing a stable environment for banks to raise capital.
As of April 30, 2025, Equitable Bank, a subsidiary of EQB Inc. (TSX: EQB), held $134 billion in combined assets under management and administration.
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