Equitable Bank completes second covered bond issue in Europe

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TORONTO, May 27, 2022 /CNW/ – Equitable Bank (the “Bank”), is pleased to announce that it has made an offer of 300 million euros statutory covered bonds due May 27, 2025 (the “Covered Bonds”). The bonds were issued in accordance with the Canadian Registered Covered Bond Programs Guide, published by Canada Mortgage and Housing Corporation (“CMHC”).

The 3 year old 300 million euros The covered bonds were issued with an AA rating with a spread of 20 basis points to average EUR swaps and are listed on the Irish scholarship (Euronext Dublin). This issue is the Bank’s second covered bond issue since CMHC Equitable CAO accredited facility $2.0 billion legislative program of covered bonds in July 2021.

“All costs included, the covered bonds remain the lowest wholesale funding cost available to the Bank by a significant margin and we are very pleased with this second issuance.” said Chadwick Westlake, Chief Financial Officer of the Bank. “The offering is the second in a series of planned offerings, particularly in the context of the Bank’s recent announcement to acquire a majority stake in Concentra Bankwhich will further increase the issuance capacity of Equitable’s covered bond program in line with the increase in size of Equitable post-acquisition,” said Westlake.

In the United Kingdom, this announcement is being distributed to and is directed only to persons who: (A) (i) are “investment professionals” as referred to in section 19(5) of the Services Act and the Financial Markets (Financial Promotion) Order 2005 (the “Order”) or (ii) high net worth entities falling under section 49(2)(a) to (d) of the Order or (iii) are other persons to whom they may otherwise lawfully be communicated; and (B) are “accredited investors” within the meaning of Article 2(e) of Regulation (EU) 2017/1129, as it forms part of the domestic law of the United Kingdom under the European Union (Withdrawal) Act 2018 (all such persons being collectively referred to as the “data subjects”). Within the European Economic Area (the “EEA”), this announcement is directed only and is directed only at persons of Member States who are “accredited investors” within the meaning of Article 2(e) of the Regulation ((EU) 2017/1129 (“Qualified Investors“). This announcement must not be used or relied upon (i) in the United Kingdom, by persons who are not data subjects, and (ii) in any member state of the EEA, by persons who are not not Qualified Investors. Any investment or investment activity to which this announcement relates is only available to: (i) in the UK, relevant persons; and (ii) in any EEA Member State, Qualified Investorsand will only engage with these people.

About Equitable Bank

Equitable Group Inc. trade on the Toronto Stock Exchange (TSX: EQB) (TSX: EQB.PRC) and (TSX: EQBR) and serves more than 340,000 Canadians through its wholly-owned subsidiary Equitable Bank, from Canada Challenger Bank™. Equitable Bank has a clear mandate to drive change in Canadian banking to enrich people’s lives. Founded over 50 years ago, Equitable Bank offers diversified banking services to individuals and businesses and, through Equalization Bank platform (eqbank.ca) was named the best Annex I Bank in Canada on the Forbes world Lists of the best banks 2022 and 2021. Please visit equitablebank.ca for more details.

Investor contacts:

Media contact:

Richard Gil

Jessica Kosmack

Vice President, Corporate Development and Investor Relations

Senior Manager, Communications

[email protected]

[email protected]

416-513-3638

647-600-2512

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Statements made in this press release, in other documents filed with Canadian securities regulators and in other communications include forward-looking statements within the meaning of applicable securities laws (“forward-looking statements”). These statements include, but are not limited to, statements about the Company’s objectives, strategies and initiatives, expectations regarding financial results and risk management, statements about or containing future bond issues statements made by our Chief Financial Officer and any other statements made herein, whether relating to the business of the Company or the Canadian economy. Generally, forward-looking statements can be identified by the use of forward-looking words such as “anticipates”, “expects” or “does not expect”, “is planned”, “budget”, “expected “, “expected”, “estimates”, “plans”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and expressions which indicate that certain actions, events or results “may”, “could”, “would”, “could” or “will be taken”, “would occur” or “would be carried out”. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of the Company are materially different from those expressed or implied by such forward-looking statements. forward-looking statements, including, but not limited to, risks relating to financial markets and additional financing needs, fluctuations in interest rates and general economic conditions, legislative and regulatory developments, the nature of our customers and default rates, and competition and the factors discussed under “Risk Management” in the MD&A and in the Company’s filings on SEDAR at www.sedar.com. All material assumptions used in making forward-looking statements are based on management’s knowledge of current business conditions and expectations of future business conditions and trends, including its knowledge of current credit, interest rate and liquidity affecting the Company and the Canadian economy. Although the Company believes that the assumptions used in making such statements are reasonable at this time and has attempted to identify in its continuous disclosure documents important factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Certain important assumptions are applied by the Company in making forward-looking statements, including, without limitation, assumptions regarding its continued ability to fund its mortgage business at current levels, a continuation of the current level of economic uncertainty that affects real estate market conditions, continued market acceptance of its products, as well as no material changes in its operating cost structure and current tax regime. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements contained herein except in accordance with applicable securities laws.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in any province, state or jurisdiction in which such offer or solicitation would be unlawful prior to registration or qualification under the securities laws of that province, state or jurisdiction.

THE SOURCE Equitable Bank

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