Fairstone Bank of Canada Announces Successful closing of Inaugural $250 Million Deposit Note Offering

TORONTO and MONTREAL, Sept. 16, 2025 /CNW/ - Fairstone Bank of Canada ("Fairstone Bank" or the "Bank") today announced the successful closing of its inaugural deposit note issuance, generating $250 million in proceeds through a three-year fixed-rate deposit note (the "Notes").

The offering generated strong demand, attracting orders from 35 institutional investors totaling $1.2 billion, or 4.7-times oversubscription and represents the largest book size and order book multiple achieved on an inaugural fixed-rate C$ non-DSIB offering since 2021. Robust participation enabled the Bank to tighten the spreads throughout the marketing process to 135 basis points over Government of Canada bonds, underscoring investor confidence in Fairstone Bank's growing position in the Canadian financial services sector and its disciplined approach to balance sheet management. The three-year Notes offer a coupon of 3.937%, payable semi-annually, with a maturity date of September 18, 2028.

"This inaugural issuance represents an important milestone in Fairstone Bank's funding strategy as the development of a diversified and seasoned wholesale funding platform is a key long-term strategic initiative," said Amir Gorgi, Executive Vice President & Chief Financial Officer at Fairstone Bank. "Investor response highlights the confidence in our bank's credit strength, capital markets presence and long-term growth prospects. This issuance provides us with a competitively priced source of funding to support our continued momentum as we are helping Canadians access credit to meet their financial needs."

The issuance was completed with BMO Capital Markets and National Bank Financial Markets acting as joint bookrunners, and with CIBC Capital Markets, Desjardins Securities, RBC Capital Markets, Scotiabank, and TD Securities supporting as co-managers.

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 are not deposits insured under the Canada Deposit Insurance Corporation Act.

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]