HomeEquity Bank successfully closes its inaugural $175 million Deposit Note offering
Toronto, December 11, 2023 – HomeEquity Bank (“HEB” or the “Bank”) today announced that it has concluded its inaugural issue of $175 million of deposit notes due December 11, 2026 (the “Deposit Notes”). The Deposit Notes are senior unsecured obligations of HEB.
The Deposit Notes have a coupon of 7.108% per annum, paid semi-annually commencing June 11, 2024. DBRS Morningstar has assigned HEB’s Deposit Notes a rating of BBB (low) with a Stable trend.
CIBC Capital Markets and TD Securities acted as joint bookrunners and BMO Capital Markets, National Bank Financial Markets, RBC Capital Markets and Scotiabank acted as co-managers in respect of the offering.
“HomeEquity Bank has been delivering exceptional operating and financial results, which have resonated well with investors,” said Atul Chandra, Executive Vice President and Chief Financial Officer, HomeEquity Bank. “We are very pleased with the support investors have provided to our first offering of Deposit Notes, which will provide a new source of funding for the Bank and support our rapidly growing reverse mortgage business.”
Certain statements contained in this news release constitute forward-looking information and statements (collectively “forward-looking statements”). When used in the news release the words “will” and similar expressions are intended to identify forward-looking statements. No assurance can be given that these expectations will prove to be correct, and such forward looking statements included in this news release should not be unduly relied upon. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These factors include, but are not limited to, risks related to capital markets and additional funding requirements, credit and underwriting risk, fluctuating interest rates, asset quality and rates of default, legal and regulatory risk, derivative related risk and reliance on relationships with financial institutions. The Bank does not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time, except as required under applicable securities legislation.
About HomeEquity Bank
HomeEquity Bank is a Schedule 1 Canadian Bank offering a range of reverse mortgage solutions including the flagship CHIP Reverse Mortgage™ product. The Bank was founded more than 35 years ago to address the financial needs of Canadians who wanted to access the equity of their top asset – their home. The Bank is committed to empowering Canadians aged 55 plus to live the retirement they deserve, in the home they love. HomeEquity Bank is a portfolio company of Ontario Teachers’ Pension Plan Board, a global investor that delivers retirement income for 336,000 current and retired teachers in Ontario. For more information, visit www.chip.ca.
For more information: Michael Lomas, Vice President &Treasurer, email: email@example.com or cell: 437 348-4752