On July 16, 2024, EQB Inc. (TSX: EQB) successfully completed the issuance of $150 million in 8.000% Limited Recourse Capital Notes, Series 1 (Subordinated Indebtedness), marking a significant step in enhancing its capital structure. The Limited Recourse Capital Notes (LRCNs) were oversubscribed by over four times, attracting 25+ investors, with a quarter being new to EQB’s debt platform. The LRCNs have an initial annual interest rate of 8.000%, resetting every five years based on the prevailing 5-year Government of Canada yield plus 4.548%. The LRCNs mature on October 31, 2084, with an option for redemption starting in 2029.

Proceeds from the issuance will be used to purchase equivalent Limited Recourse Capital Notes from Equitable Bank, EQB’s wholly-owned subsidiary, qualifying as additional Tier 1 capital under regulatory requirements. The offering was conducted via a prospectus supplement to EQB's 2022 base shelf prospectus.

National Bank Financial Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., RBC Dominion Securities Inc., and TD Securities Inc. acted as agents for the offering on a best efforts basis. Legal matters were overseen by McCarthy Tétrault LLP for EQB Inc. and Torys LLP for the agents.