Fairstone Bank raises $360M in largest-ever deposit note sale
What's the deal? Fairstone Bank of CanadaDealroom has a profile for this one. Try Dealroom → has closed a C$500 million (roughly $360 million) three-year senior deposit note offering, the largest such issuance in its history. The debt was priced at par with a fixed 4.310% coupon and matures on September 10, 2029.
Why now? The bank launched with a C$400 million minimum and upsized to C$500 million after orders reached about C$1.7 billion from 41 investors — more than 3.4 times oversubscription.
What's the endgame? Fairstone Bank, whose subsidiaries include Fairstone FinancialDealroom has a profile for this one. Try Dealroom → and Home TrustDealroom has a profile for this one. Try Dealroom →, is building a diversified funding platform to support its consumer lending, mortgage, and deposit businesses across more than 260 branches. The offering drew new institutional investors, broadening its base. It describes itself as "Canada's leading alternative lending bank."
What did they say? "The depth and quality of demand we received allowed us to achieve all of our key objectives," said Amir Gorgi, executive vice president and chief financial officer. He added that the results let the bank price "with no new issue concession" and narrow its pricing gap versus larger Canadian peers.
Who's involved? CIBC World MarketsDealroom has a profile for this one. Try Dealroom →, Scotia CapitalDealroom has a profile for this one. Try Dealroom →, and TD SecuritiesDealroom has a profile for this one. Try Dealroom → acted as joint bookrunners. BMO Nesbitt BurnsDealroom has a profile for this one. Try Dealroom →, Desjardins SecuritiesDealroom has a profile for this one. Try Dealroom →, Laurentian Bank SecuritiesDealroom has a profile for this one. Try Dealroom →, National Bank FinancialDealroom has a profile for this one. Try Dealroom →, and RBC Dominion SecuritiesDealroom has a profile for this one. Try Dealroom → served as co-managers.
The notes are senior unsecured obligations that rank equally with the bank's other unsecured liabilities. They are not insured under the Canada Deposit Insurance Corporation Act. The issuance follows two years of milestones, including public credit ratings and the integration of Home Trust.
The signal: At roughly $360 million, this ranks among the largest debt rounds by a Canadian fintech, landing in the 92nd percentile of 101 comparable deals. The oversubscription shows appetite for alternative lenders tapping institutional capital markets rather than deposit funding alone.
Image credit: Arild Vågen
