Equitable Bank Successfully Completes $150 Million Deposit Note Issue
TORONTO, April 1, 2014 /CNW/ - Equitable Bank, a wholly owned subsidiary of Equitable Group Inc. (TSX: EQB) and (TSX: EQB.PR.A) today announced the successful institutional placement of a $150 million three-year fixed rate Deposit Note. The note was priced at 135 basis points over the interpolated Government of Canada yield curve and has a coupon rate of 2.595%.
"This is the Bank's first issuance of Deposit Notes and we are particularly pleased with the strong reception from the investor community," said Andrew Moor, President and Chief Executive Officer. "This was evidenced by broad institutional investor demand and an order book that was well oversubscribed. The transaction highlights our commitment to becoming a more diversified financial institution and broadening our deposit base. It also reflects the rising awareness of the Equitable Bank brand in the marketplace."
The issuance was completed with RBC Capital Markets and CIBC World Markets acting as co-leads and bookrunners, supported by BMO Capital Markets, Scotiabank, and TD Securities as co-managers.
The note is the first issuance in what the Bank expects to be an ongoing Deposit Note program, and as such it intends to become a regular issuer of Deposit Notes in the future.
ABOUT EQUITABLE GROUP INC.
Equitable Group Inc. is a growing Canadian financial services business that serves the market through its wholly-owned subsidiary, Equitable Bank. Equitable Bank is a federally regulated Schedule I Bank with total assets of approximately $12 billion, with 295 skilled employees and proven capabilities in lending and deposit-taking. The Company's integrated operations are organized according to specialty. Within Equitable Bank's Core Lending business, Single Family Lending Services funds mortgages for owner-occupied and investment properties across Canada while Commercial Lending Services provides mortgages on a variety of commercial properties on a national basis. Equitable's Securitization Financing business originates and securitizes insured residential mortgages under the Canada Mortgage and Housing Corporation administered National Housing Act. Equitable Bank provides savings products including Guaranteed Investment Certificates and savings accounts. Equitable Bank was founded in 1970 as The Equitable Trust Company. For more information, visit the Company's website at www.equitablebank.ca and click on Investor Relations.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements made by the Company 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 the Company's objectives, strategies and initiatives, financial result expectations and other statements made herein. 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. 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. Please see the Company's 2013 MD&A found at www.equitablebank.ca or at www.sedar.com for additional information.
SOURCE Equitable Group Inc.For further information:
President and Chief Executive Officer
Vice President and Chief Financial Officer