CIBC completes US$700 million NVCC limited recourse capital notes

Torys acted as Canadian counsel to CIBC with a team that included David Seville, Michael Murphy and Sarah Rimer (corporate/securities) and Jerald Wortsman and Julia Zhuo (tax).

On January 13, 2026, CIBC completed a public offering in the United States of US$700 million of 6.500% fixed rate reset limited recourse capital notes Series 9 (non-viability contingent capital (NVCC)) (subordinated indebtedness) (the "LRCNs").

The LRCNs bear interest at a rate of 6.500% annually, payable quarterly, for the initial period ending on, but excluding, July 28, 2031. Thereafter, the interest rate on the LRCNs will reset every five years at a rate equal to the prevailing 5-year U.S. Treasury Rate plus 2.727%. The LRCNs will mature on July 28, 2086. In connection with the issuance of the LRCNs, CIBC issued non-cumulative 5-Year fixed rate reset Class A preferred shares Series 64 (non-viability contingent capital (NVCC)) held by Computershare Trust Company of Canada as trustee of CIBC LRCN limited recourse trust.

The joint book-running managers for the offering were CIBC World Markets Corp., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and UBS Securities LLC.

CIBC may redeem the LRCNs on July 28, 2031 and on each January 28, April 28, July 28 and October 28 thereafter with the prior written approval of the Superintendent of Financial Institutions (Canada), in whole or in part on not less than 10 days' nor more than 60 days' prior notice.

The net proceeds from the sale of the LRCNs will be used for general corporate purposes, which may include the redemption of outstanding capital securities of CIBC, and/or the repayment of other outstanding liabilities of CIBC.

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

CIBC is a leading North American financial institution with 15 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada, in the United States and around the world.