New three-year note pushes total program to $2.15 billion
Equitable Bank has completed its second-largest deposit note issuance to date, closing a $350 million fixed-rate offering that pushes its total outstanding deposit notes program to $2.15 billion.
The three-year note, set to mature on May 5, 2028, was priced at 3.738%, with a spread of 118 basis points over the Government of Canada curve. The order book was oversubscribed by 2.5 times, allowing the bank to upsize the issuance to the top of its announced range. Investor demand included both existing and new participants.
Joint leads and bookrunners on the deal were National Bank Financial Markets, RBC Capital Markets, Scotiabank, and TD Securities, with BMO Capital Markets and CIBC Capital Markets acting as co-managers.
"This latest issuance is a clear signal that investors remain confident in our strategy, performance and vision for the future of Canadian banking," EQB president and CEO Andrew Moor said in a press release. "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 deposit notes rank equally with Equitable Bank’s unsecured and unsubordinated liabilities but are not eligible for Canada Deposit Insurance Corporation (CDIC) coverage.
This move follows recent rate adjustments at the bank in March, Equitable Bank reduced its prime lending rate by 25 basis points to 4.95%, alongside its subsidiary Concentra Bank, which made the same adjustment.
Moody’s Ratings recently assigned Equitable Bank an inaugural long-term issuer rating of Baa2 and a short-term issuer rating of P-2. According to the bank, these ratings signal confidence in its financial stability and measured growth prospects.
Read next: Equitable Bank announces crucial ratings upgrades
"Moody's inaugural ratings are a testament to Equitable Bank's robust balance sheet and prudent risk management," Moor said. "This is an exciting next step forward for us that underscores the strength and resilience of our business model. It is great to have recognition from Moody's trusted and global voice that aligns with our commitment to maintaining high standards of financial resilience and prudence while finding exciting opportunities for future growth."
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