Fairstone Bank of Canada Announces Successful Closing of $500 Million Deposit Note Offering

TORONTO and MONTREAL, Sept. 8, 2026 /CNW/ -- Fairstone Bank of Canada ("Fairstone Bank" or the "Bank") announced today the successful closing of a public $500 million three-year senior deposit note offering (the "Notes"), marking the largest deposit note issuance in the Bank's history and further strengthening its diversified funding platform.

The offering generated exceptional institutional investor demand, attracting orders of approximately $1.7 billion from 41 investors, representing more than 3.4 times oversubscription. The transaction was originally launched with a minimum size of $400 million and was subsequently upsized to $500 million due to strong demand. The offering achieved several significant milestones for the Bank, including the largest order book, tighter relative valuation versus peers, and highest number of participating investors in Fairstone Bank's deposit note program to date. The transaction also attracted several new institutional investors to the Bank's funding program, further broadening and diversifying its investor base.

"The success of this offering reflects the continued confidence investors have in Fairstone Bank's financial strength, strategic direction and long-term growth prospects," said Amir Gorgi, Executive Vice President and Chief Financial Officer of Fairstone Bank. "The depth and quality of demand we received allowed us to achieve all of our key objectives: broaden our investor base, increase the number of participating investors, upsize the transaction, price with no new issue concession and continue to narrow our pricing differential versus larger Canadian bank peers. These results demonstrate the significant progress we have made in building our presence in the Canadian capital markets and support our strategy of maintaining a diversified and resilient funding platform."

The Notes were issued at par and bear a fixed coupon of 4.310%. Interest will be paid semi-annually, and the Notes will mature on September 10, 2029. The Notes are senior unsecured obligations of the Bank ranking equally and rateably with all present and future unsecured and unsubordinated liabilities of the Bank, including deposit liabilities, except as otherwise prescribed by law. The Notes do not constitute deposits that are insured under the Canada Deposit Insurance Corporation Act.

Strengthening Fairstone Bank's Funding Platform
The successful issuance further reinforces Fairstone Bank's access to the Canadian institutional capital markets and builds on a series of strategic milestones achieved by the Bank over the past two years, including the establishment of public credit ratings, the successful integration of Home Trust and continued execution against its long-term growth strategy.

The issuance was executed through an agency syndicate consisting of CIBC World Markets Inc., Scotia Capital Inc. and TD Securities Inc. acting as joint bookrunners, and BMO Nesbitt Burns Inc., Desjardins Securities Inc., Laurentian Bank Securities Inc., National Bank Financial Inc. and RBC Dominion Securities Inc. 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: Stéphanie Boutin, Vice President, Capital Markets and Funding, [email protected], [phone] ext.: 6302410; Media contact: Caroline Morin, Vice President, Corporate Communications, [email protected], [phone]