Equitable Bank taps European markets with €500 million covered bond deal
Equitable Bank has secured €500 million in fresh capital through its seventh covered bond issuance since 2021, signaling sustained appetite from international investors. The move marks a calculated step in the Toronto-based lender's strategy to broaden its funding base following its recent acquisition of PC Financial.
The new bonds, which carry a 3.75% coupon and are priced to yield 3.789%, are set to mature on December 7, 2029. Backed by strong credit ratings of Aa1 from Moody’s and AA+ from Fitch, the issuance drew support from a syndicate of major global institutions including Barclays, TD Bank, and Commerzbank.
Anilisa Sainani, Chief Financial Officer at EQ Bank, noted that the capital injection is vital for maintaining the bank’s investment profile while supporting its growth trajectory. The proceeds are intended to bolster a funding stack that now incorporates the expanded operations following the PC Financial integration, fueling the bank's efforts to scale its services for Canadian households and businesses.
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