06:51 AM EDT, 07/10/2024 (MT Newswires) -- EQB (EQB.TO) overnight Tuesday said it will raise $150 million via an offering of 8.000% limited recourse capital notes, Series 1 in Canada.

The notes will bear interest at 8.000% annually, payable semi-annually, for the initial period ending on, but excluding, Oct. 31, 2029. Thereafter, the interest rate will reset every five years at a rate equal to the prevailing five-year Government of Canada Yield plus 4.548%.

The notes, which will mature on Oct. 31, 2084, are not characterized as non-viability contingent capital. The offering is expected to close on July 16.

In connection with the offering, EQB will issue non-cumulative five-year fixed rate reset preferred shares, Series 5, to be held by Computershare Trust Co. of Canada, as trustee of EQB LRCN Limited Recourse Trust.

EQB plans to use the proceeds to buy $150 million 8.001% limited recourse capital notes, Series 1 of the bank, or the bank notes. The proceeds to the bank from the sale of the bank notes will be used for general banking purposes.

EQB owns Equitable Bank, a Schedule 1 bank regulated by the Office of the Superintendent of Financial Institutions Canada.