Intact Financial completes C$250 million limited recourse capital notes offering

On August 24, 2026, Intact Financial Corporation ("Intact") announced the completion of its previously announced offering, by way of a private placement to accredited investors in Canada, of C$250 million aggregate principal amount of 6.133% limited recourse capital notes, Series 3 (subordinated indebtedness), due September 30, 2086.

The notes were offered on a best efforts basis through a syndicate co-led by CIBC Capital Markets and Scotiabank.

The notes are direct unsecured obligations of Intact and will be subordinated to all senior indebtedness of Intact and effectively subordinated to all indebtedness and obligations of Intact's subsidiaries. The notes bear interest at a fixed annual rate of 6.133% until September 30, 2031 and the interest rate will reset on that date and on every fifth anniversary of such date until the maturity date at a fixed interest rate per annum equal to the Government of Canada Yield on the business day prior to such interest reset day plus 2.75%. In connection with the issuance of the notes, Intact issued 250,000 non-cumulative rate reset Class A shares, Series 15 to be held by Computershare Trust Company of Canada, as trustee of IFC LRCN Trust. In case of non-payment of interest on or the principal or redemption price of the notes when due, the recourse of each holder of notes will be limited to that holder's proportionate share of IFC LRCN Trust's assets in respect of the notes, which will consist of the Series 15 preferred shares except in limited circumstances.

Intact may redeem the notes in whole or in part, at its option, during the period from August 31 to and including September 30, commencing in 2031 and every five years thereafter, on payment of a redemption price equal to par, together with accrued and unpaid interest to, but excluding, the date of redemption.

Intact intends to use the net proceeds from the offering for general corporate purposes, in order to subscribe for shares of one or more subsidiaries of Intact, in order to repay all or a portion of any amounts previously borrowed by Intact, in order to redeem all or a portion of any preferred shares previously issued by Intact or any combination thereof.

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

Intact Financial is the largest provider of property and casualty (P&C) insurance in Canada, a leading provider of global specialty insurance, and, with RSA, a leader in commercial lines in the U.K. and Ireland.