EQB completes C$200 million offering of limited recourse capital notes

On April 27, 2026, EQB Inc. (“EQB”), the 100% owner of Equitable Bank (the "Bank") closed its previously announced public offering of C$200 million 6.760% limited recourse capital notes, Series 2 (subordinated indebtedness) (the "LRCNs") in Canada.

The LRCNs bear interest at 6.760% annually, payable semi-annually, for the initial period ending on, but excluding, October 31, 2031. Thereafter, the interest rate on the LRCNs will reset every five years at a rate equal to the prevailing 5-year Government of Canada Yield plus 3.650%. The LRCNs will mature on October 31, 2086. LRCNs issued by EQB Inc. are not characterized as non-viability contingent capital (NVCC).

In connection with the issuance of the LRCNs, EQB Inc. also issued non-cumulative 5-Year fixed rate reset preferred shares, Series 6 (the "Series 6 shares") to be held by Computershare Trust Company of Canada, as trustee of EQB LRCN limited recourse trust (the "Limited Recourse Trust"). In the case of non-payment of interest on or principal of the LRCNs when due, the recourse of each LRCN holder will be limited to that holder's proportionate share of the limited recourse trust's assets held in respect of the LRCNs, which will consist of the Series 6 shares, except in limited circumstances.

The LRCNs may be redeemed by EQB Inc. during the period from September 30, 2031, to and including October 31, 2031, and every five years thereafter, in whole or in part on not less than 10 nor more than 60 days' prior notice, provided that the Bank elects to complete and has obtained receipt of all necessary regulatory approvals relating to a redemption of the same number of bank notes.

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

Net proceeds of the offering will be used by EQB to acquire C$200 million 6.761% limited recourse capital notes, Series 2 (non-viability contingent capital (NVCC)) (subordinated indebtedness) of the Bank.

Further information can be found on Canada Newswire’s website.

EQB is a leading digital financial services company with C$142 billion in combined assets under management and administration as at January 31, 2026. It offers personal and commercial banking services through Equitable Bank, a wholly owned subsidiary and Canada's seventh largest bank by assets, and wealth management through ACM Advisors, a majority-owned subsidiary specializing in alternative assets.