Equitable Bank celebrates latest funding milestone with significant $500 million deposit note

Latest issuance 4.7x oversubscribed, reflecting strong confidence in long-term strategy and challenger bank value proposition

TORONTO, Sept. 24, 2024 /PRNewswire/ - Equitable Bank, Canada's Challenger Bank™, announces a significant milestone in its funding strategy as it closes a $500 million fixed rate deposit note. With a record-breaking $2.3 billion order book that was 4.7x oversubscribed among 44 unique investors, the latest issuance is a clear testament to the market's appetite for Equitable Bank's unique challenger bank position.

The deposit note was issued in two tranches: a 2-year $200 million deposit note was offered at a 3.92% fixed rate and matures on September 24, 2026, and a 3.5-year $300 million deposit note was offered at a 3.99% fixed rate and matures on March 24, 2028. The transaction, successfully priced for the 2-year and 3.5-year notes at 107 bps and 127 bps above the Government of Canada curve, respectively, represent negative new issue concessions of 3 bps for each tranche and led to further repricing of Equitable Bank's secondary curve.

"The overwhelming response from investors highlights the appeal of our strategy and the important and evolving role of Equitable in Canada's banking sector," said Chadwick Westlake, chief financial officer, Equitable Bank. "The attractive pricing we achieved underscores the trust investors place in our ability to deliver sustainable value, and we are energized as we continue building on this momentum to deliver long-term growth."

The issuance was completed with BMO Nesbitt Burns, CIBC World Markets, RBC Dominion Securities and TD Securities acting as joint leads and bookrunners, with National Bank Financial and Scotia Capital supporting as co-managers.

The deposit notes rank equally and rateably with all of Equitable Bank's present and future unsecured and unsubordinated liabilities, and deposit notes are not eligible for Canada Deposit Insurance Corporation insurance.

About Equitable Bank

Equitable Bank has a clear mission to drive change in Canadian banking to enrich people's lives. As Canada's Challenger Bank™ and seventh largest bank by assets, it leverages technology to deliver exceptional personal and commercial banking experiences and services to over 670,000 customers and more than six million credit union members through its businesses. It is a wholly owned subsidiary of EQB Inc. (TSX: EQB and EQB.PR.C), a leading digital financial services company with $125 billion in combined assets under management and administration (as at July 31, 2024). Through its digital EQ Bank platform (eqbank.ca), its customers have named it one of the top banks in Canada on the Forbes World's Best Banks list since 2021.

To learn more, please visit eqb.investorroom.com or connect with us on LinkedIn.

Investor contact:

Mike Rizvanovic
Managing Director, Investor Relations
[e-mail]

Media contact:

Maggie Hall
Director, PR & Communications
[e-mail]

Cautionary Note Regarding Forward-Looking Statements

Statements made in this news release include forward-looking statements within the meaning of applicable securities laws ("forward-looking statements"). These statements include, but are not limited to, statements about EQB Inc.'s (the "Company") objectives,  strategies  and initiatives,  financial  results, expectations  and  risk  management, statements about or containing possible future issuances of deposit notes of Equitable Bank (the "Bank"), a wholly owned subsidiary of the Company, statements made by Equitable Bank's chief financial officer and any other statements made herein, whether with respect to the Company's and Bank's businesses or the Canadian economy. Generally, forward-looking statements can be identified by the use of forward-looking   terminology   such as   "plans",   "expects"   or   "does   not   expect",   "is   expected",   "budget", "scheduled",  "planned",  "estimates",  "forecasts", "intends",  "anticipates"  or  "does  not  anticipate",  or "believes",  or  variations  of  such  words  and  phrases  which  state  that  certain  actions,  events  or  results "may",  "could",  "would",  "might"  or  "will  be  taken",  "occur"  or  "be  achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to capital markets and additional funding requirements, fluctuating interest rates and general economic conditions, legislative and regulatory developments, the nature of our customers and rates of default, and competition as well as those factors discussed under the heading "Risk Management" in the Company's Management's Discussion and Analysis and in the Company's other documents filed on SEDAR+ at www.sedarplus.ca. All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current credit, interest rate and liquidity conditions affecting the Company, the Bank and the Canadian economy. Although the Company and the Bank believe the assumptions used to make such statements are reasonable at this time and has attempted to identify in its continuous disclosure documents important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Certain material assumptions are applied by the Company in making forward-looking statements, including without limitation, assumptions regarding its continued ability to fund its mortgage business at current levels, a continuation of the current level of economic uncertainty that affects real estate market conditions, continued acceptance of its products in the marketplace, as well as no material changes in its operating cost structure and the current tax regime. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company and the Bank do not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.

The deposit notes have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or delivered, directly or indirectly, or sold in the United States. This press release does not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction.

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