By Wendy Van Sickle
Columbus, Ohio, April 23 – Equitable Bank closed on €500 million of new three-year legislative covered bonds that were its first issuance of a social bond under its sustainable bond framework, according to a news release.
The social bonds priced at a spread of 58 basis points over the mid-swap rate.
The notes are due May 28, 2027 (//AA/DBRS: AA).
Barclays, DZ Bank, Erste Group, LBBW, RBC Capital Markets, Scotiabank and TD Securities were the bookrunners.
Approximately two-thirds of the more than 100 investors were new to Equitable Bank's covered bond program, and the total order book exceeded €4 billion and was oversubscribed by more than eight times, the bank said, adding that it structured the bond to focus on social and affordable housing, in recognition of the challenges of the housing landscape in Canada.
Equitable Bank, a Toronto-based financial services company, is a subsidiary of Equitable Group Inc.
| Issuer: | Equitable Bank
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| Amount: | €500 million
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| Issue: | Social covered bonds
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| Maturity: | May 28, 2027
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| Bookrunners: | Barclays, DZ Bank, Erste Group, LBBW, RBC Capital Markets, Scotiabank and TD Securities
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| Spread: | Mid-swaps plus 58 bps
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| Announcement date: | April 23
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| Ratings: | Fitch: AA
|
| Morningstar DBRS: AA
|
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