Equitable Bank raises $561M in covered bonds to diversify funding
What's the deal? Equitable BankDealroom has a profile for this one. Try Dealroom → has issued €500 million in covered bonds, roughly US$584.5M, in a post-IPO debt offering. Barclays, Toronto-Dominion BankDealroom has a profile for this one. Try Dealroom →, and Commerzbank helped arrange the deal.
Why now? The issuance follows Equitable's acquisition of PC FinancialDealroom has a profile for this one. Try Dealroom → and extends its push for a diversified funding stack. It is the seventh offering under the bank's US$2.2B Global Legislative Covered Bond Programme, launched in 2021.
By the numbers: The bonds carry a 3.75% coupon, are priced to yield 3.789%, and mature on December 7, 2029. Moody's rated them Aa1 and FitchDealroom has a profile for this one. Try Dealroom → assigned AA+.
What's the endgame? Equitable is the parent of EQ BankDealroom has a profile for this one. Try Dealroom →, which brands itself as Canada's Challenger Bank and serves more than 4 million customers. The group holds roughly $151 billion in combined assets under management and administration, spanning personal and commercial banking, home and auto insurance, credit union solutions, and alternative asset management.
Chief financial officer Anilisa Sainani said the bank was pleased with the "continued strong backing" it received from investors.
The signal: At about $561 million, the raise sits in the top half of debt deals of its kind — a sizeable move that shows how Canada's challenger banks are tapping international debt markets to fund growth beyond deposits.
Read more: third-news.com
Image credit: Generated with Gemini
