TORONTO and MONTREAL, May 5, 2026 /CNW/ - Fairstone Bank of Canada ("Fairstone Bank" or the "Bank") announces the successful issuance of $425 million of Class A notes on April 30, 2026, under its Classic RMBS Trust Series 2026‑1, representing the first issuance of the Classic RMBS program since 2022 and the first RMBS transaction completed following its combination with Home Trust Company.
The transaction generated strong investor demand, with total orders exceeding $900 million from 19 institutional investors, representing an oversubscription of approximately 2.2 times. Robust participation enabled pricing to tighten meaningfully through the marketing process, from initial soft‑sounding levels of approximately Government of Canada ("GoC") +100–105 basis points to a final spread of GoC +90 basis points.
The Class A notes, issued in secured, fixed‑rate amortizing form, carry a coupon of 3.777%, a weighted average life forecasted to be approximately 1.7 years, and are rated AAA (sf) by Morningstar DBRS and Aaa (sf) by Moody's Ratings. The final pricing represents one of the tightest levels achieved for a Classic RMBS transaction and came well inside Fairstone Bank's senior unsecured deposit notes, underscoring strong collateral quality and investor confidence.
"This issuance reflects the strength and versatility of our funding platform," said Amir Gorgi, Executive Vice President and Chief Financial Officer of Fairstone Bank of Canada. "Reactivating our Classic RMBS program adds meaningful flexibility to our balance sheet and reinforces our ability to access diverse sources of capital across market cycles. The outcome speaks to the strength of the Home Trust mortgage business and the confidence investors place in Fairstone Bank's long‑term strategy."
The transaction also marked an expansion of the RMBS investor base, with six investors participating in their first Classic RMBS Trust issuance, and strong engagement throughout the marketing process, including a national investor call and multiple one‑on‑one meetings.
The issuance was completed through an offering memorandum, with RBC Capital Markets acting as structuring lead, which, along with Scotiabank and TD Securities, served as joint bookrunners, with BMO Capital Markets, BofA Securities, CIBC Capital Markets, Desjardins Securities, Laurentian Bank Securities and National Bank Financial Markets acting as co‑managers.
About Fairstone Bank of Canada
Fairstone Bank of Canada and its subsidiaries, including Fairstone Financial Inc. and Home Trust Company, deliver innovative, accessible and reliable financial solutions that enable Canadians to reach their financial goals. Collectively, we offer residential and commercial mortgages, consumer deposits and GICs, retail and automobile financing, credit cards and digital lending, in addition to unsecured and secured personal loans online and at more than 260 branches coast to coast. With a long-established history, we are proud to be Canada's leading alternative lending bank. Learn more at FairstoneBank.ca.
SOURCE Fairstone Financial Inc.
Investor Contact: Ramana Kovvali, Vice President, Capital Markets, [email protected] | Media Contact:, Caroline Morin, Vice President, Corporate Communications, [email protected], +1 833 461-2900
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