EQB Inc. Announces Successful Offering of $150 Million Limited Recourse Capital Notes

EQB Inc., a leading digital financial services company, has announced the successful offering of $150 million 8.000% Limited Recourse Capital Notes (LRCNs) in Canada. The LRCNs, which are subordinated indebtedness, will bear interest at 8.000% annually and mature on October 31, 2084.

The offering received an overwhelming response, with the total order book being oversubscribed by more than 4 times. Approximately one-quarter of the 25+ investors were new to the group’s debt platform, highlighting the strong interest in EQB’s challenger ethos and its role in driving change in Canadian banking.

Chadwick Westlake, Chief Financial Officer of EQB Inc., expressed his belief that the successful issuance of the LRCNs strengthens the company’s balance sheet and underscores its unique position in the Canadian banking landscape. He emphasized EQB’s commitment to creating long-term value for shareholders.

In connection with the issuance of the LRCNs, EQB Inc. will issue Non-Cumulative 5-Year Fixed Rate Reset Preferred Shares, Series 5, to be held by Computershare Trust Company of Canada. The Limited Recourse Trust will hold these shares as assets in case of non-payment of interest or principal on the LRCNs.

The gross proceeds from the sale of the LRCNs will be used by EQB Inc. to acquire $150 million 8.001% Limited Recourse Capital Notes of Equitable Bank. These Bank Notes are intended to qualify as additional Tier 1 capital for the Bank, enhancing its regulatory capital adequacy requirements.

The LRCNs will be offered through a prospectus supplement to EQB Inc.’s short form base shelf prospectus. Interested parties can access the prospectus supplement, base shelf prospectus, and any amendments through the appropriate regulatory authorities.

EQB Inc., through its subsidiary Equitable Bank, offers banking services and wealth management solutions. With over $123 billion in combined assets under management and administration, EQB Inc. leverages technology to deliver exceptional personal and commercial banking experiences to its customers.

For more information about EQB Inc. and its offerings, visit eqb.investorroom.com or connect with the company on LinkedIn.

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