Equitable Bank Completes $200 Million Deposit Note Issue

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TORONTOSept. 21, 2020 /CNW/ – Equitable Bank (the “Bank”), a wholly owned subsidiary of Equitable Group Inc. (the “Company”) (TSX: EQB) (TSX: EQB.PR.C) today announced the closing of a successful institutional placement of a $200 million 3-year fixed rate deposit note due September 21, 2023 (the “Deposit Note”).

EQ Bank reaches $4B in deposits following continued growth and surge in demand for a new way to bank (CNW Group/Equitable Bank)

The Deposit Note was priced at 150 basis points over comparable term Government of Canada bonds, and will carry a coupon of 1.774%.  The bond was supported by a broad investor base expressing record interest in the purchase of Equitable Bank deposit notes.  The Deposit Note ranks equally and ratably with all present and future unsecured and unsubordinated liabilities of the Bank.  It is not eligible for Canada Deposit Insurance Corporation insurance.

“We are pleased to be able to once again participate in the deposit note market on very favorable terms,” said Andrew Moor, President and CEO of Equitable Bank. “We believe that our position as Canada’s Challenger Bank™ situates us well for further risk-managed growth, and look forward to rewarding investor confidence with a sustained deposit note issuance program.”

The issuance was completed with BMO Nesbitt Burns Inc., and Scotia Capital Inc. acting as joint leads and bookrunners, supported by CIBC World Markets Inc., National Bank Financial Inc., RBC Dominion Securities Inc. and TD Securities Inc., acting as co-managers.

ABOUT EQUITABLE GROUP INC.

Equitable Group Inc. is a growing Canadian financial services business that operates through its wholly-owned subsidiary, Equitable Bank. Equitable Bank, Canada’s Challenger BankTM, has grown to become the country’s ninth largest independent Schedule I bank through its proven branchless approach and customer service focus in providing residential lending, commercial lending and savings solutions to Canadians.

EQ Bank, the digital banking platform launched in 2016 by Equitable Bank provides state-of-the-art digital banking services. The Savings Plus Account reimagines banking by offering an everyday high interest rate, plus the flexibility of a chequing account, with free transactions, no everyday banking fees, no minimum balances, fast, cheap, and fully transparent international money transfers, and more—all from one account. Its Guaranteed Investment Certificates (GICs) also offer Canadians a wide range of options with competitive rates. EQ Bank continually challenges the status quo to bring better banking solutions to Canadians. To learn more, please visit www.eqbank.ca.