Fairstone Bank of Canada Strengthens Funding Platform with Approval of its Legislative Covered Bond Programme

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TORONTO and MONTREAL, Sept. 15, 2026 /CNW/ -- Fairstone Bank of Canada ("Fairstone Bank" or the "Bank") today announced that it has received approval from Canada Mortgage and Housing Corporation (CMHC) to establish a CAD $1.5 billion legislative covered bond programme (the "Programme") under Canada's legislative covered bond framework. The approval marks an important milestone in the continued evolution of the Bank's funding strategy, supporting the diversification of the Bank's funding sources, broadening the Bank's investor base and enhancing long-term funding flexibility.

Each of the Bank, as issuer, and the Programme are now registered, in the registry maintained by CMHC in accordance with the National Housing Act (Canada), which will allow the Bank to issue legislative covered bonds (the "Covered Bonds").

The Programme is expected to provide Fairstone Bank with access to a broader institutional investor base, including European investors. Covered bonds have long been recognized as a resilient and cost-effective source of funding for financial institutions and are widely used by banks globally to support balance sheet growth and funding diversification. The approval positions Fairstone Bank among a select group of Canadian financial institutions that have established legislative mortgage-based covered bond programmes. It also advances Fairstone Bank's multi-year strategy to expand and diversify its funding platform across deposits, securitization, unsecured debt and covered bonds.

Fairstone Bank plans to meet with potential Covered Bond investors during the Fall and expects to pursue its inaugural covered bond issuance in the fourth quarter of 2026.

"The establishment of our covered bond programme represents another important step in the ongoing development of Fairstone Bank's funding platform," said Amir Gorgi, Executive Vice President and Chief Financial Officer of Fairstone Bank. "This Programme enhances our funding flexibility, broadens our investor reach and further strengthens our ability to support the Bank's continued long-term growth. We are pleased to have achieved this milestone and look forward to engaging with investors as we prepare for our inaugural issuance."

The Programme has been established with RBC Capital Markets acting as structuring lead, McCarthy Tétrault LLP serving as issuer counsel, and Ernst & Young LLP acting as asset monitor.

Important Information
This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction, including in the United States, its territories and possessions, any State of the United States, and the District of Columbia (the "U.S."). Covered bonds may not be offered or sold in the U.S. absent registration or an exemption from registration. Any future offering of covered bonds, including any future offering made in the U.S. will be made solely pursuant to applicable offering documents and in accordance with applicable securities laws and will contain detailed information about the Bank and its management, as well as financial statements. Prospective investors should review the applicable prospectus and offering documents before making an investment decision. The information contained in this news release is intended to be consistent with the information contained in, or required to be contained in, the applicable prospectus documentation and is not misleading.

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 Contacts: Peter Walker, Senior Vice President & Treasurer, [email protected]; Ramana Kovvali, Vice President, Capital Markets, [email protected]; Media Contact: Caroline Morin, Vice President, Corporate Communications, [email protected], [phone]